Fundamentally, biotech stocks to buy operate on a clear and unavoidable narrative: wealth means nothing without health. You hear various stories about extremely wealthy tycoons throwing all kinds of money, not just for lifesaving procedures but in more superficial efforts such as maintaining youth and vitality. It comes down to the same theme. Good health is ultimately more important than any amount of money you can generate.
Therefore, biotech stocks to buy offer a permanently relevant storyline. That’s not to say that individual companies within the ecosystem are guaranteed to succeed. No such promises exist in life or the markets. Rather, the sector at least benefits from the broader push to address the frailties of the human condition. As such, biotech firms often attract significant investor dollars.
It’s not without merit. According to Grand View Research, the global biotech space reached a valuation of $1.55 trillion in 2023. From 2024 to 2030, the sector may expand at a compound annual growth rate (CAGR) of 13.96%, hitting a value of $3.88 trillion.
What’s enticing is that not every idea in this ecosystem is expensive. Here are some potential bargain breakthroughs among biotech stocks to buy.
Esperion (ESPR)
Based in Ann Arbor, Michigan, Esperion (NASDAQ:ESPR) falls under the drug manufacturing category of the healthcare industry. Per its public profile, Esperion develops and commercializes medicines for the treatment of patients with elevated low-density lipoprotein cholesterol (LDL-C). It mainly focuses on patients suffering from heterozygous familial hypercholesterolemia or atherosclerotic cardiovascular disease who require additional lowering of LDL-C.
Analysts are bullish on ESPR stock, rating it a consensus moderate buy. The average price target stands at $7.41, implying over 156% upside potential. Further, the high-side target comes in at $16, implying almost 454% growth from Wednesday’s close. Interestingly, the least optimistic target calls for a price of $2.90, which is practically at par with the current price.
For fiscal 2024, covering experts anticipate a loss per share of four cents. That’s a significant improvement over last year’s loss of $2.03. What’s more compelling, they’re targeting revenue of $324.39 million, implying almost 179% expansion from the prior year. With so much anticipated potential, ESPR may rank as one of the enticing biotech stocks to buy.
ADC Therapeutics (ADCT)
Based in Switzerland, ADC Therapeutics (NYSE:ADCT) focuses on developing its proprietary antibody drug conjugate or ADC technology. This platform may help transform the treatment paradigm for patients suffering from hematologic malignancies and solid tumors. The company’s core drug is called Zynlonta, which is an ADC that received accelerated approval from the U.S. Food and Drug Administration. Zynlonta targets a certain type of lymphoma.
Analysts are incredibly enthusiastic about ADCT stock, rating it a unanimous strong buy. What’s more, the view stems from six expert voices, with the most recent one coming from Cantor Fitzgerald near the end of May. Notably, the average price target clocks in at $10, implying over 216% upside potential. What’s more, the high-side target soars to $13 per share.
On paper, the analysts anticipate fiscal 2024 to see a loss per share of $1.89. It’s still deeply in the red but it also represents a big improvement over 2023’s loss of $2.94. On the top line, they’re looking for revenue of $77.82 million, up 11.9% from last year’s tally of $69.56 million. If you can handle the risk, ADCT ranks among the top speculative biotech stocks to buy.
Autolus Therapeutics (AUTL)
Based out of the U.K., Autolus Therapeutics (NASDAQ:AUTL) represents a clinical-stage enterprise that is developing T-cell therapies. The company is developing its platform to address cancer. It also features a business unit focused on targeting autoimmune diseases. Fundamentally, Autolus “enjoys” for lack of a better a massive total addressable market. Per various health agencies, autoimmune diseases are rising.
Not surprisingly, analysts also love AUTL stock, rating it a unanimous strong buy. This assessment stems from four expert voices, with the most recent coming from Needham earlier this month. Overall, the average price target stands at $9.75, implying almost 125% upside potential. Further, the high-side target comes in at $11 per share, pointing to a possible 153% upside.
For fiscal 2024, covering experts believe that Autolus will post a loss per share of 78 cents. Again, we’re talking about red ink. Nevertheless, that would be an improvement over last year’s loss of $1.20. More importantly, analysts project sales ot hit $17.82 million, implying a massive 949.5% growth from last year’s haul of $1.7 million.
For those who want to swing for the fences, AUTL is one of the biotech stocks to buy.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.