Biotech Stocks Could Rally – TheStreet

Biotech stocks took a beating over the past 12 months, but their cheap valuations could be good entry points for investors, experts say.

The outlook for biotech stocks is positive in part because the last time the market experienced a similar drawdown was during the 2015 to 2016 time period when the decline was about 50%. In the subsequent 23 months, biotech stocks “worked back to new highs and the sector was up over 130%, Thomas Hayes, chairman of Great Hill Capital in New York, told TheStreet.

Biotechs have been in a slump and have corrected over 50% since February 2021, but the weakness in the sector could emerge as steep discounts since valuations could turn around. Some metrics estimate it can skyrocket from 24% to 155%, according to this recent analysis from Bank of America.

Source: https://www.thestreet.com/technology/biotech-stocks-could-rally?puc=yahoo&cm_ven=YAHOO&yptr=yahoo