7 Biotech Stocks to Buy as Sector Rotation Ramps Up

Core Viewpoint - The technology sector may face a slowdown, prompting a potential shift towards biotech stocks, which have not received the same attention despite their innovation potential [1] Group 1: Crispr Therapeutics (CRSP) - Crispr Therapeutics is utilizing the CRISPR gene-editing platform to develop medicines, with expected revenue of $105.82 million in fiscal 2024, down 71.5% from $371.21 million in 2023, but projected to rise to $405.2 million by 2025, a 9.2% increase from 2023 [2] - The gene editing market is anticipated to reach $15.8 billion by 2031, up from a valuation of $1.89 billion in 2022 [2] Group 2: Halozyme (HALO) - Halozyme develops oncology therapies and has seen its stock gain over 12% since the start of the year, with expected revenue of $954.58 million for the current fiscal year, a 15.1% increase from $829.25 million last year [5] - Analysts project earnings per share (EPS) of $3.68 for this year, up from $2.77 in 2023, with a forecast of $4.58 for 2025 [5] Group 3: SpringWorks Therapeutics (SWTX) - SpringWorks focuses on targeted oncology and is expected to achieve revenue of $87.34 million this fiscal year, a 1,503.5% increase from $5.45 million last year, with projections of $256.3 million in 2025 [7] - Analysts rate shares a unanimous strong buy with an average price target of $66.33, implying a 33% increase [8] Group 4: Cytokinetics (CYTK) - Cytokinetics develops muscle activators and inhibitors, with projected sales of $6.57 million this year, a 12.7% decline from $7.53 million last year, but expected to rise to $146.24 million by 2025, a 2,126% increase from 2024 [9] - Analysts rate shares a strong buy with an average price target of $94.63, indicating nearly 47% growth potential [10] Group 5: Jazz Pharmaceuticals (JAZZ) - Jazz Pharmaceuticals, known for its product Xyrem, is expected to report revenue of $4.11 billion for the current fiscal year, a 7.2% increase from $3.83 billion last year, with projections of $4.4 billion in 2025 [11] - Analysts rate shares a strong buy with a forecast price of $183.82, suggesting almost 59% upside potential [12] Group 6: Viking Therapeutics (VKTX) - Viking Therapeutics has gained 267% in equity value since January, focusing on therapeutics for metabolic disorders, although no sales forecast is provided [13] - Analysts unanimously rate VKTX a strong buy with an average price target of $102.43, implying nearly 53% upside potential [14] Group 7: Arrowhead Pharmaceuticals (ARWR) - Arrowhead Pharmaceuticals specializes in RNA-based therapeutics, with expected sales of $139 million this fiscal year, a 42.2% decline from $240.74 million last year, but projected to reach $157.94 million in 2025 [15] - The consensus view for ARWR stock is a moderate buy, with an average price target of $53.70, indicating 88% upside potential [16]