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Back in October, I did something crazy.
That's when I told the paid-up members of my Radical Technology Profits trading service to buy a small-cap biotech stock.
Here's why that move was a bit nuts.
At the time, it looked like Hillary Clinton would soon enter in the White House and clamp down on drug prices – and so the biopharmaceutical sector was deeply out of favor.
Turns out, however, our crazy bet paid off.
Despite his campaign rhetoric, President Donald Trump has pulled back from his own fiery rhetoric about drug-price caps.
That helped pushed biotech and drug stocks into a big uptrend.
And my paid-up members made peak gains of 116% – in just over eight months.
Today, things have changed – and investing in biopharma stocks is generally seen as a smart move. However, that means a lot of these shares have been bid up, and your best move is to buy big winners at deep discounts.
But to do that, you have to know how to find those deals.
Today I'll show you how you can, too.
And I'll reveal the three best biotech bargains out there right now.
All three have triple-digit gain potential…
Not One, but Two D.C. Catalysts
I hate to look to Washington for help when it comes to finding tech stocks you can use to get on the Road to Wealth.
But I'll take it when it comes our way.
Besides the seeming end of grousing about drug prices, biopharma stocks are gaining ground from another big catalyst out of Washington.
The White House is now talking about speeding up the U.S. Food and Drug Administration approval process.
That would be huge.
You see, hundreds of drugs are in FDA trials. It now takes an average 10 years and $1 billion to get a drug from discovery to market.
So, anything that gets the hundreds of drugs now in FDA trials out faster and cheaper is good news for biopharma investors – not to mention doctors and patients seeking new and effective treatments.
No wonder the sector is on fire once again.
The iShares Nasdaq Biotechnology ETF (Nasdaq: IBB) is up 11% since it hit a three-month low on May 30. Those gains are better than nine times greater than the S&P 500's return of 1.2% over the period.
So, now that we have some proof for the sector's rebound, it's time to dig up those biotech bargains.
Remember that 116%-gains-in-eight-months winner I told you about before?
I didn't do so just to brag, but to demonstrate to you that I've got a knack – a system – for finding undervalued biotech shares. And I see a similar setup occurring right now with three great pharmaceutical leaders that are priced for a big move up.
Here's how I know: each is selling at a big discount from its peer group.
I base that on the fact that the tech-centric Nasdaq 100 is trading at about 21 times the forward price-to-earnings ratio (forward P/E), a key gauge of earnings growth roughly a year out. And based on their forward P/Es, these three biotech bargains are trading at "fire sale" prices.
Take a look…
About the Author
Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.