Fool biotech analyst Brian Orelli has an even more specific suggestion: Instead of putting all your eggs in one profitless and cash-burning egg-basket like Dendreon or Navidea, or hoping that an ETF -- the contents of which you're not quite sure of -- will keep you safe, buy shares of a bigger, more stable company like Abbott (NYSE:ABT) Labs or Myriad Genetics (NASDAQ:MYGN) . As Brian notes, both companies are developing tests to confirm how specific drugs will work upon specific patients -- an integral part of personalized medicine.
More importantly, both stocks sport valuations that while not exactly cheap, are at least reasonable. Abbott, at eight times trailing earnings, is the better "value" candidate, even if it's only expected to grow earnings at the rate of a percent or two per year over the next five years. Myriad, at a bit less than 20 times earnings, but growing at 15%, is the "growth stock" option in this pair.
Dendreon's run over the past four years witnessed sub-$5 share prices skyrocket to 10-bagger status before tumbling all the way back down below $5, as its revolutionary prostate cancer vaccine Provenge became a lightning rod of debate. But where does that leave investors -- other than a bit nauseous from the roller-coaster ride? Our own David Williamson answers this question, and many more, inside our brand new premium research report on Dendreon. Inside, he details every key issue facing the company and outlines just how Dendreon intends to regain its former glory. The report also comes with a full year of analyst updates, so claim your copy of this exclusive report today by clicking here now.
The article This Just In: Upgrades and Downgrades originally appeared on Fool.com.
Fool contributor Rich Smith has no positions in the stocks mentioned above. You can find him on CAPS, publicly pontificating under the handle TMFDitty, where he's currently ranked No. 343 out of more than 180,000 members. The Motley Fool owns shares of Dendreon. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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