One of the Top Biotech Stocks to Buy Just Hit the Market

One of the last week's biggest IPOs, the food allergy company Aimmune Therapeutics Inc. (Nasdaq: AIMT), hit the market on Thursday, Aug. 6, and has already climbed more than 20%.

AIMT's early success underscores one of the best biotech stocks to buy that Money Morning Executive Editor Bill Patalon has been recommending all year.

Food allergies affect tens of millions around the world. And the companies that treat these people offer some of the best profit opportunities among biotech stocks today...

Food Allergy Companies Offer Some of the Best Biotech Stocks to Buy Now

biotech stocks to buyAccording to Food Allergy Research & Education Inc. (FARE), more than 15 million Americans suffer from food allergies. In Europe, there are more than 17 million people who are affected.

"If you're talking about children under 18, this very serious malady affects one in every 13 kids - about two in any classroom you walk into," Patalon said.

And people with food allergies frequently suffer from anaphylaxis. It's a rapidly progressing, life-threatening allergic reaction that can result in airway constriction, heart rhythm irregularities, and even intestinal attacks. The most severe cases can put a person into shock - or even kill them.

Anyone with a food allergy, or who knows someone with a food allergy, knows just how scary these attacks can be. And the problem is only growing.

According to the U.S. Centers for Disease Control and Prevention, the number of food allergies in children soared 50% between 1997 and 2011.

"The economic cost of this is nearly $25 billion," Patalon said. "But if you're a parent of one of these kids, that 'cost' runs a distant second to the worry you feel every time your son or daughter buys a school lunch, goes to a friend's birthday party, goes out to eat with others, or snags a snack while at a friend's house."

While AIMT stock is up 20% since hitting the market, now is not the best time to buy into the biotech stock. We usually advise investors to wait until the lock-up period ends before investing in a new IPO. Price fluctuations are impossible to predict for new stocks, and a pullback is common after the stock's initial run-up.

Plus, waiting a quarter or two will allow the company to report earnings and gain some real momentum.

Instead, Patalon has been recommending a food allergy biotech stock that has climbed 28.8% in the last year. That compares to a gain of just 6.4% for the Dow Jones Industrial Average in the last 12 months.

Here's why it's one of the best biotech stocks to buy now...

Neogen Inc. (Nasdaq: NEOG) Is the Best Play on This Market

The stock we recommend is Neogen Corp. (Nasdaq: NEOG).

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Neogen reported Q2 earnings in July, and NEOG stock soared more than 21% in just one day following the report. That's because Neogen reported a record high for both earnings and revenue.

The stock was first recommended by Money Morning on April 22, 2014. Since then, it has brought a gain of 35%.

Neogen develops a number of products for food and animal safety, including diagnostic test kits used to test bacteria, sanitation, and levels of allergens. The company's kits provide "fast-test" results, which are a considerable upgrade from typical microbiology tests that have to be sent back to labs for analysis.

"Neogen is one of the very best ways to play food safety and agriculture tech," Money Morning Defense & Tech Specialist Michael A. Robinson said. "And don't underestimate the importance of that second item. The small-cap firm ensures the safety of food and animal products, which is pretty much the entire agriculture ecosystem."

Neogen has also begun selling rapid tests for food allergens like peanuts and gluten.

The Bottom Line: As the success of AIMT's IPO shows, there is a huge profit opportunity in companies focused on food allergies. More than 15 million Americans and 17 million Europeans suffer from food allergies, and the problem is only growing. One of the best biotech stocks to buy now is Neogen Corp. (Nasdaq: NEOG). The stock is up 35% since we recommended it and has plenty of room to run.

Watch the video below for five easy steps to picking the best biotech stocks to buy. Improve your returns and reduce your risk today:

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Profit Alert: Since Money Morning Executive Editor Bill Patalon launched his Private Briefing program just a few short years ago, he's recommended 192 stocks that have either doubled or tripled in value. The service has completely revolutionized the way people invest. Keep reading to find out more about his extensive research and premium stock picks...