Published on 29 Mar 2022 on Insider Monkey via Yahoo Finance
10 Best Biotech Stocks Under $5
In this article, we discuss 10 best biotech stocks under $5. If you want to see some more stocks in this selection, click 5 Best Biotech Stocks Under $5.
The biotechnology sector received ample cash flow injections during 2020, when COVID-19 testing, research, and vaccine development was at its peak. However, according to RBC Capital Markets, the SPDR S&P Biotech ETF (NYSE:XBI) fell 21% in 2021, and as of February 17, the ETF is down about 22% this year. The sector has cooled off given drug pricing and regulatory pressures, unsuccessful clinical trials, and slow mergers and acquisitions activity.
RBC recently conducted a survey of investors across the biotech sector, and 66% believe that biotech will outperform the broader market in 2022. 58% of the investors said that they would increase their exposure to the sector, and 64% believe that biotech firms are undervalued.