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The top biotech stocks in June have all returned a minimum of 35% this month. One has even shot up over 100% in just one month. And while these returns are tempting, we have an even better biotech profit play for you today.
Here is a list of the top moving biotech stocks this month…
|Company||Monthly Performance||Stock Price|
|22nd Century Group Inc. (NYSEMKT: XXII)||35.3%||$1.76|
|Synthetic Biologics Inc. (NYSEMKT: SYN)||35.6%||$0.69|
|Mannkind Corp. (Nasdaq: MNKD)||40.0%||$1.56|
|Galmed Pharmaceuticals Ltd. (Nasdaq: GLMD)||42.4%||$6.92|
|Dynavax Technologies Corp. (Nasdaq: DVAX)||48.2%||$8.35|
|Omeros Corp. (Nasdaq: OMER)||49.1%||$24.27|
|Loxo Oncology Inc. (Nasdaq: LOXO)||56.9%||$71.18|
|Clovis Oncology Inc. (Nasdaq: CLVS)||60.9%||$88.80|
|Nantkwest Inc. (Nasdaq: NK)||88.8%||$7.42|
|Puma Biotechnology Inc. (Nasdaq: PBYI)||108.8%||$80.85|
While some of these monthly gains are spectacular, we don't recommend any of these stocks right now. Two of these stocks are still down for the year, Mannkind (down 51%) and Synthetic Biologics (down 4.4%).
Medical Miracle: On June 23, a small lab plans to announce a breakthrough treatment for the deadliest disease known to man – and it could deliver a windfall for investors who get in now. Read more…
Additionally, three of the top performing biotech stocks this month are trading below the $5 threshold to be considered penny stocks, while three more are just above that mark. Generally speaking, we don't recommend penny stocks because the profit potential is not usually worth the risk for retail investors.
Most of the biotech stocks listed above are also highly volatile, with four of them having a beta above 2.5. That means that they are two and a half times more volatile than the broader market, which has a benchmark beta of 1. In contrast, our profit play today has a beta of .76, meaning it is less volatile than the market.
Finally, many of these companies have low average trading volume. A low trading volume will make it hard to get into or out of a trade at your target price. And four of these companies have a trading volume of less than one million per day. Galmed has an average trading volume of only 37,172 per day.
Today, we're bringing you one of Money Morning Executive Editor Bill Patalon's top biotech stocks right now. He has spent decades following biotech stocks, and he sees two trends setting this one company up for huge profits. Those trends are an industry shift to non-opioid pain killers and legalization of medical marijuana.
"[This biotech stock] has big upside because it's trying (and, so far, succeeding with flying colors) to work at the 'convergence' of those two powerful trends," said Patalon.
The upside is so big that analysts are predicting a potential gain of over 100% this year…