In this article, we discuss the 5 best genomics stocks to buy now. If you want to read about some more genomics stocks, go directly to 13 Best Genomics Stocks To Buy Now.
5. Agilent Technologies, Inc. (NYSE:A)
Number of Hedge Fund Holders: 46
Agilent Technologies, Inc. (NYSE:A) provides application-focused solutions to the life sciences, diagnostics, and applied chemical markets worldwide. On November 21, Agilent Technologies posted earnings for the fourth quarter of 2022, reporting earnings per share of $1.53, beating market estimates by $0.14. The revenue over the period was $1.85 billion, up 11.4% compared to the revenue over the same period last year and beating market estimates by $90 million.
On November 22, Jefferies analyst Brandon Couillard maintained a Buy rating on Agilent Technologies, Inc. (NYSE:A) stock and raised the price target to $168 from $158, highlighting that company’s initial FY23 guidance that assumes normalized core growth of 5%-6.5% seems to be a prudent starting point given the macro backdrop and tough comps.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Impax Asset Management is a leading shareholder in Agilent Technologies, Inc. (NYSE:A) with 4 million shares worth more than $487.9 million.
4. Illumina, Inc. (NASDAQ:ILMN)
Number of Hedge Fund Holders: 49
Illumina, Inc. (NASDAQ:ILMN) provides sequencing and array-based solutions for genetic and genomic analysis. On November 15, Illumina revealed that it is reducing about 5% of its global employees in response to the current macro environment. On November 14, Piper Sandler analyst David Westenberg maintained an Overweight rating on Illumina, Inc. (NASDAQ:ILMN) stock and lowered the price target on Illumina to $300 from $320.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Select Equity Group is a leading shareholder in Illumina, Inc. (NASDAQ:ILMN) with 1.6 million shares worth more than $297.8 million.
In its Q3 2022 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Illumina, Inc. (NASDAQ:ILMN) was one of them. Here is what the fund said:
“Illumina, Inc. (NASDAQ:ILMN) has had a very difficult year on what we believe are transitory issues. First, the company closed its acquisition of Grail, a startup early-stage cancer testing business it re-acquired (Grail was founded inside Illumina originally) for $8 billion without regulatory approval. Illumina management believes that European regulators have no jurisdiction over the transaction as Grail had no European presence or revenue and member states did not complain within the timeframe specified in applicable regulations. The regulators have challenged these assertions and are likely to try to require Illumina to divest Grail subject to Illumina’s appeal. In the meantime, Grail has already been very dilutive to Illumina’s earnings, and Illumina may have to sell the asset at the end of it all. It is unknown how much Grail could be sold for in this environment if Illumina is forced to divest.
Second, Illumina’s core sequencing business has also slowed. This is not unusual as the business has always been a bit lumpy, but new competitors are trying to prove that they can sequence genomes cheaper than Illumina without sacrificing accuracy. Our research here suggests: 1) competitor technologies do not seem to be as cost-effective or accurate in the real world as advertised, providing limited risk to Illumina’s core business; 2) Illumina has unveiled its next-generation technology, which lowers the cost of sequencing the human genome to only $200, including data processing costs with world-class accuracy; 3) the slowdown in the core business is more macroeconomic as customers are looking to reduce consumables inventory levels in tough times and should pass quite quickly considering customers are continuing to use their sequencers at high levels; and 4) even if Illumina were forced to divest Grail, we think they would likely be able to sell it for above what it purchased it for as all of the clinical data on the company’s Galleri cancer screen is now publicly available (it is very positive in our view). Grail has made significant commercial progress since its acquisition, and the company should only be closer to U.S. regulatory approval. We believe we can buy the shares today at an extremely cheap valuation for the core business of a company that we view as having an unmatched position in a market that should be multiples of its current size in the years to come.”
3. Sarepta Therapeutics, Inc. (NASDAQ:SRPT)
Number of Hedge Fund Holders: 52
Serapta Therapeutics, Inc. (NASDAQ:SRPT) is a commercial-stage biopharmaceutical company that focuses on the discovery and development of RNA-targeted therapeutics, gene therapies, and other genetic therapeutic modalities for the treatment of rare diseases. On November 28, Sarepta Therapeutics noted that the FDA accepted its marketing application for gene therapy candidate SRP-9001 it developed with Roche under the agency’s priority review.
On November 3, Credit Suisse analyst Judah Frommer maintained a Neutral rating on Sarepta Therapeutics, Inc. (NASDAQ:SRPT) stock and raised the price target to $101 from $93, noting that the company reported third-quarter earnings with the call largely centered on timelines for SRP-9001.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm VenBio Select Advisors is a leading shareholder in Serapta Therapeutics, Inc. (NASDAQ:SRPT) with 3.2 million shares worth more than $350.96 million.
2. Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY)
Number of Hedge Fund Holders: 55
Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) is a biopharmaceutical company that focuses on discovering, developing, and commercializing novel therapeutics based on ribonucleic acid interference. On October 27, Alnylam Pharmaceuticals said that it has dropped plans to begin a late study to find a potential therapy for the rare eye disorder, Stargardt Disease, as it evaluates the impact of the recently enacted Inflation Reduction Act in the US.
On November 2, H.C. Wainwright analyst Patrick Trucchio maintained a Buy rating on Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) stock and lowered the price target to $415 from $430, noting that price target adjustment is mostly due to the development delay for Stargardt disease.
At the end of the third quarter of 2022, 55 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), compared to 40 in the previous quarter worth $775 million.
In its Q3 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) was one of them. Here is what the fund said:
“We initiated a position in Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY), a commercial-stage biopharmaceutical company which pioneered a new class of innovative medicines based on RNA interference (RNAi). This class of medicines acts by silencing the messenger RNA that encodes for the proteins that can cause disease, thereby preventing these disease-causing proteins from being made. Alnylam’s validated platform has demonstrated a higher probability of success in drug development versus the industry overall with five medicines approved in less than four years. During the quarter, the company reported positive results from its Apollo-B Phase 3 study of Patisiran in patients with ATTR Amyloidosis with Cardiomyopathy, a rare, progressively debilitating, and fatal disease caused by misfolded TTR proteins which accumulate as amyloid deposits in the heart, nerves, and GI tract. Alnylam also has multiple other late-stage medicines in the pipeline including a new blood pressure drug in Phase 2 studies that can potentially be delivered as a twice-yearly shot. Alnylam has an extensive intellectual property estate with fundamental RNAi technology, delivery, and product-specific protection, and is in a position to achieve sustainable profitability within the next few years.”
1. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
Number of Hedge Fund Holders: 62
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) develops and commercializes therapies for people with serious and life-threatening rare diseases and medical conditions. The US Food and Drug Administration recently accepted a Biologics License Application from BioMarin Pharmaceutical for its hemophilia A gene therapy candidate, valoctocogene roxaparvovec.
On November 29, Jefferies analyst Akash Tewari maintained a Buy rating on BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) stock and raised the price target to $120 from $100, highlighting that 80 patients in Germany could get on Roctavian once it is available, which would imply sales above what is modelled by the Street for the fourth quarter of 2022 to the second quarter of 2023.
At the end of the third quarter of 2022, 62 hedge funds in the database of Insider Monkey held stakes worth $3.1 billion in BioMarin Pharmaceutical Inc. (NASDAQ:BMRN), compared to 59 in the preceding quarter worth $2.9 billion.
In its Q2 2022 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) was one of them. Here is what the fund said:
“BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) rose as the company announced a new approval in Japan for its drug to treat achondroplasia (dwarfism), and investors may have become more optimistic regarding its therapy for haemophilia following a positive opinion from European drug regulators. The drug is pending approval and has been delayed by the U.S. Food and Drug Administration to collect more data.”
You can also take a peek at 15 Best Cybersecurity Stocks To Buy and 25 Smartest Countries in the World.
