Yesterday I looked at the biotech sector's outperformance of the headline-grabbing tech and small-cap sectors. Even better, I gave you a way to play it plus a way to juice what should be tidy profits.
But nonetheless, biotech stocks just aren't getting the same love as the highly touted "FANG" stocks and the like.
But that's okay with me – more money for the rest of us.
In fact, my "Best in Breed" (BIB) model excels at uncovering underappreciated outperformers. First, it looks for the strongest sectors. Then, it uncovers the highest fliers in those sectors – the cream of the crop.
Today, as promised, I have two biotech names that have not only outperformed this year, but should continue to outpace the large-cap tech media darlings as well as the on-fire small-cap sector.
Though both have outperformed in 2018, each one is subject to analyst skepticism that is not consistent with their technical strength. That's why I look for their rallies to continue throughout at least the next few months.
Without further ado, let's take a look at these beasts…
About the Author
Chris Johnson is a highly regarded equity and options analyst who has spent much of his nearly 30-year market career designing and interpreting complex models to help investment firms transform millions of data points into impressive gains for clients.
At heart Chris is a quant - like the "rocket scientists" of investing - with a specialty in applying advanced mathematics like stochastic calculus, linear algebra, differential equations, and statistics to Wall Street's data-rich environment.
He began building his proprietary models in 1998, analyzing about 2,000 records per day. Today, that database, which Chris designed and coded from scratch, analyzes a staggering 700,000 records per day. It's the secret behind his track record.
Chris holds degrees in finance, statistics, and accounting. He worked as a licensed broker for 11 years before taking on the role of Director of Quantitative Analysis at a big-name equity and options research firm for eight years. He recently served as Director of Research of a Cleveland-based investment firm responsible for hundreds of millions in AUM. He is also the Founder/CIO of ETF Advisory Research Partners since 2007, noted for its groundbreaking work in Behavioral Valuation systems. Their research is widely read by leaders in the RIA business.
Chris is ranked in the top 99.3% of financial bloggers and top 98.6% of overall experts by TipRanks, the track record registry of financial analysts dating back to January 2009.
He is a frequent commentator on financial markets for CNBC, Fox, Bloomberg TV, and CBS Radio and has been featured in Barron's, USA Today, Newsweek, and The Wall Street Journal, and numerous books.
Today, Chris is the editor of Night Trader and Strikepoint Trader and contributes to Money Morning as the Quant Analysis Specialist.