In this article, we will look at the 10 Biotech Stocks Screaming a Buy.
The biotech sector has underperformed the overall market. Those are sentiments echoed by JPMorgan analyst Chris Schott, given the 10% year-to-date loss by the SPDR S&P Biotech ETF. Nevertheless, the analysts view the underperformance for a third straight year as an opportunity for investors.
While most of the underperformance in the year can be attributed to President Donald Trump’s tariffs, Schott insists it is overdone. The analysts expect any impact from policy change to be manageable as valuations in the sector are historically low, meaning the worst possible outcome is already priced in.
“The sector [should be] able to largely mitigate the impact of tariffs in the mid/long term through manufacturing repatriation and 2) [there’s] no clear path for MFN [“most favored nation”] to move forward without Congressional approval (outside of IRA price negotiations),” Schott said.
According to Schott, fundamentals for stocks in the sector have improved in recent years, which should support “a more manageable sales/EPS erosion outlook for most names.
With that in mind, let’s take a look at 10 Biotech Stocks Screaming a Buy.
Our Methodology
To make the list of 10 Biotech Stocks Screaming a Buy, we scanned the US equity markets, focusing on Biotech stocks outperforming the market. We focused on stocks with significant year-to-date gains and popularity among elite hedge funds. Finally, we ranked the stocks in ascending order based on their year-to-date gain.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Biotech Stocks Screaming a Buy
10. Incyte Corporation (NASDAQ:INCY)
Year to Date Gain as of June 18: 1.87%
Number of Hedge Fund Holders as of Q1: 37
Incyte Corporation (NASDAQ:INCY) is one of the 10 biotech stocks screaming a buy. On June 17, Incyte was a big mover in the market, announcing the signing of a strategic partnership with Netherlands QIAGEN N.V. QGEN. The two are coming together to enhance the development of a novel diagnostic panel to support investigational treatments for myeloproliferative neoplasms (MPNs).
The strategic partnership covers the development of Incyte’s investigational monoclonal antibody targeting mutant calreticulin (mutCALR), currently under development for myelofibrosis (MF) and essential thrombocythemia (ET). The deal is also expected to benefit Incyte in advancing its precision medicine efforts in MPNs.
Under the terms of the agreement, QIAGEN is to develop a multimodal panel using next-generation sequencing (NGS) technology. The panel aims to identify key gene alterations in MPNs. The panel will also be validated on the Illumina NextSeq 550Dx platform for use with whole blood samples.
Incyte Corporation (NASDAQ:INCY) is a global biopharmaceutical company that focuses on discovering, developing, and commercializing proprietary therapeutics for patients with unmet medical needs. It develops drugs for rare and hard-to-treat diseases, including those in oncology and inflammation/autoimmunity.
9. Ionis Pharmaceuticals, Inc. (NASDAQ:IONS)
Year to Date Gain as of June 18: 7.06%
Number of Hedge Fund Holders as of Q1: 43
Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) is one of the 10 biotech stocks screaming a buy. On June 12, the company announced the upcoming retirement of Richard Geary, Ph.D., its executive vice president and chief development officer, effective January 2026. Holly Kordasiewicz, Ph.D., currently senior vice president of neurology, will take over the role. Geary has been with Ionis since 1995 and played a pivotal role in bringing six medicines to regulatory approval, including the company’s first independently commercialized drug, TRYNGOLZA.
Dr. Kordasiewicz, who joined Ionis in 2011, brings over 20 years of experience in R&D, particularly in neurology. She leads the company’s neurology program, covering treatments for conditions such as Alzheimer’s disease, Angelman syndrome, and Alexander disease. Her work has also contributed to key partnered programs with Biogen, including the development of QALSODY® and IONIS-MAPTRx.
As Dr. Geary transitions out of his role, he will continue as a strategic consultant through 2026 to ensure continuity. Ionis leadership praised both Geary’s legacy and Kordasiewicz’s appointment as a pivotal step in driving the company’s commitment to developing transformational therapies for patients with serious diseases.
Ionis Pharmaceuticals, Inc. is a U.S.-based commercial-stage biotech company specializing in RNA-targeted therapies. Its approved products include TRYNGOLZA for FCS, WAINUA, and TEGSEDI for ATTRv-PN, SPINRAZA for spinal muscular atrophy, QALSODY for ALS, and WAYLIVRA for rare lipid disorders. The company has a robust pipeline, including late-stage programs like Olezarsen (for hypertriglyceridemia), Donidalorsen (for hereditary angioedema), and Zilganerse (for Alexander disease), along with several mid-stage treatments for neurological and metabolic conditions. Ionis also collaborates with leading pharma firms, including Biogen, GSK, AstraZeneca, Novartis, Roche, and Metagenomi, expanding its reach in developing transformative RNA therapies.