Biotech And Medical Stocks Leading Performers As 2022 Draws To A Close

A handful of biotech and medical stocks have joined the elite IBD 50 list, boasting strong fundamentals and high growth potential. These leading industry groups have proven winners booking double-digit returns in 2022.

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Genmab (GMAB) was added to the IBD 50 Top 10 list this week. Medpace (MEDP) was also added to this list and IBD’s Leaderboard. Other top performers include Catalyst Pharmaceuticals (CPRX) and Inspire Medical (INSP).

The biotech and medical stock sectors started to decline in February 2021 and hit new lows this summer. They bounded with a steady run through August and pulled back, trading sideways into year’s end. These groups are seen as defensive plays and a good place for investors to park their cash.

One Stock Extended, Another Should Be Cashed In

Catalyst is extended from the 5% buy zone of a cup-with-handle base with buy point of 16.76. The rare disease drugmaker produced accelerating EPS and sales growth in the last three quarters.

The stock has been trending upward since a positive Q3 earnings report in early November. Shares have risen an impressive 180% year to date.

Analysts expect annual EPS growth of 33% in 2022 and 66% in 2023. Catalyst is first in the 800 strong Medical-Biomed/Biotech industry group, which is ranked 30th out of the 197 IBD stocks.

Medpace is trying to form a new consolidating base after breaking out of a cup pattern following better-than-expected Q3 earnings and sales numbers late October. The biotech specializes in research for drug and medical devices, and clinical trial management. The stock pulled back and has been in volatile trading since the breakout.

Inspire Medical is in the 20% to 25% profit zone after hitting the 212.22 buy point of a double-bottom base. Shares broke out after reporting a smaller Q3 loss and higher than expected sales on Nov. 1.

The company produces the only FDA-approved implanted sleep apnea device. Inspire is yet to be profitable.

Inspire has shown consistent quarterly sales growth in the 70% range for the last five quarters.

Mutual funds own 77% of INSP shares, with 580 owning shares in September, up from 565 in June and 542 in March.

Other Hot Biotech And Medical Stocks

Denmark-based biotech and medical stock Genmab has shown accelerating quarterly growth in sales and EPS.

Shares of this cancer drugmaker emerged from a long, deep cup base after a failed attempt at a proper handle. GMAB dropped below its 21-day exponential moving average and touched the 50-day moving average, finding support at the line.

AstraZeneca (AZN) pulled back after breaking out of a double-bottom base in December. Shares took a dive on news the company’s prostate cancer drug will face an extended review by the Food and Drug Association.

Finally, Neurocrine Biosciences (NBIX) makes neurological and endocrine-related disease treatments, and is up almost 41% year to date.

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