© Reuters. 3 Biotech Stocks Wall Street Predicts Will Rally by More Than 170%
The rapid spread of the COVID-19 Delta variant is fostering renewed investor interest in the biotech industry. Also, with the increasing demand for treatments for other critical diseases, the industry is expected to continue on a growth trajectory. So, we think it could be wise to bet on biotech stocks ASLAN Pharmaceuticals (ASLN), Aquestive Therapeutics (NASDAQ:), and Aravive (NASDAQ:). They have promising portfolios of products and Wall Street analysts see tremendous upside potential for these stocks in the near term. Read on.While the biotech industry lost some momentum earlier this year with investors focusing on outdoor stocks to capitalize on the economic recovery, the recent spread of the hyper-contagious Delta variant of coronavirus, and consequent resurgence of COVID-19 cases in several countries, is driving renewed interest in the industry. This is evidenced by the iShares Biotechnology ETF’s (IBB) and the VanEck Vectors Biotech ETF’s (BBH) 6.6% and 9.6% returns, respectively, over the past three months.
he rising prevalence of chronic maladies, such as cancer and diabetes, is also driving an increasing need for the development of new, advanced drugs. In addition, technological innovations and rising investment in this space should keep bolstering the industry’s growth. According to a Global Market Insights report, the biotechnology market is expected to grow at a 9.4% CAGR between 2021 – 2027.
Given this backdrop, we think biotech companies ASLAN Pharmaceuticals Limited (ASLN), Aquestive Therapeutics, Inc. (AQST), and Aravive, Inc. (ARAV) possess immense growth potential based on their innovative product portfolios. And Wall Street analysts expect shares of these companies to rally significantly in the near term.
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