Key Biotech Stocks Poised for Breakout: Top Picks | Investing.com

Regeneron Pharmaceuticals (NASDAQ:REGN) is a standout name in the biotech sector, having recently beaten earnings expectations and offering an attractive prospect for investors seeking exposure to individual stocks. 
 
Following a period of prolonged consolidation and downtrend after the pandemic-driven surge, the biotechnology sector, represented by the iShares Biotechnology ETF (NASDAQ:IBB), appears poised for a potential breakout. The sector has turned previous resistance levels into support and is trading nearly 30% above its 52-week low while consolidating above the $140 mark. 
 
If this consolidation continues, it could potentially create enough energy to propel IBB past its $150 resistance level, indicating a sustained upward movement. Now may be an opportune time for investors interested in gaining exposure to this industry. 
 
The iShares Biotechnology ETF offers broad-based exposure for those looking at diversification within healthcare with significant emphasis on biotech. Its top five holdings account for almost 30% of total weighting and include well-known companies like Gilead Sciences (NASDAQ:GILD) and Vertex Pharmaceuticals (NASDAQ:VRTX). Around 70% of IBB's portfolio is invested in biotech firms, while just over 9% lies with healthcare equipment and supply providers. 
 
In terms of technicals, IBB has converted its resistance at $140 into support. While breaking above $150 might seem challenging short-term, continued consolidation over $140 increases chances of a substantial breakout beyond this point, signaling bullish momentum. 
 
For those preferring individual stock exposure instead of ETFs, Regeneron presents itself as an exciting option that outperforms not only year-to-date but also historically, making it one of IBB’s top-weighted names. 
 
Regeneron holds prime position within IBB's portfolio with an impressive market cap nearing $125 billion. Primarily engaged in discovering, developing, and commercializing treatments aimed at various diseases, REGN's performance this year has been commendable, with stock prices soaring nearly 30%. 
 
Despite such robust performance, REGN's shares have fallen around 6% from their 52-week high. The current low RSI of 45 suggests a potential buying opportunity for investors. Critical support is approximately $1,100, in line with its uptrend and the ascending 50-day moving average. 
 
Regeneron continues to aggressively expand its treatment portfolio across diseases. Recently, it announced the successful completion of Phase-3 trials on Dupixent (developed in collaboration with Sanofi), which met primary and secondary objectives when treating chronic spontaneous urticaria in patients not previously exposed to biologics. 
 
Furthermore, Regeneron reported five-year data from the EMPOWER-Lung-1 trial on September 9th, showcasing Libtayo® monotherapy's durable survival benefit for advanced non-small cell lung cancer patients vis-à-vis chemotherapy—underscoring REGN’s continuous success in enhancing therapeutic capabilities. 
 
On the earnings front too, Regeneron has excelled by forecasting a full-year earnings growth of about 7.3%. In its latest report dated August 1st, 2024, the company recorded an EPS of $11.56, beating expectations by a wide margin while reporting revenue figures at $3.55 billion, marking YoY growth of about 12.3%. With positive analyst focus resulting in consensus Moderate Buy based on twenty-one ratings, this might be an ideal time to invest in Regenron Pharmaceuticals.