Typically when we cover index rebalancing or reconstitutions, they are happening within a few days of when our story is posted. Investors may have a huge head start as, even though the Russell Indexes will not reconstitute until late in June, there are some solid candidates that may be offering investors big gains now.
A new report from Credit Suisse points out that stocks that are moving up the market cap ladder from the Russell 2000 to the Russell 1000 tend to outperform ahead of the changes and underperform in the six months after. They also expect that biotech stocks will see the most promotions. We highlight the four biotech and health care stocks that Credit Suisse feels will be moving on up.
DexCom Inc. (NASDAQ: DXCM) is a medical device company headquartered in San Diego, Calif., that is developing and marketing continuous glucose monitoring systems for ambulatory use by patients and by health care providers in the hospital. The company has made its G4 PLATINUM CGM System with Share app available on the Apple Watch.
Being one of the first companies in the category to be approved by the U.S. Food and Drug Administration (FDA), DexCom’s app will allow diabetic patients to track their blood glucose statistics right from their wrist. The app will also allow them to share this information with caregivers, parents, doctors or other authorized individuals and send an alert when the glucose levels are beyond the normal range.
The Thomson/First Call consensus price target for the stock is $70.36. Shares closed on Monday at $67.60.
Isis Pharmaceuticals Inc. (NASDAQ: ISIS) engages in the discovery and development of antisense drugs using a novel drug discovery platform. The company’s flagship product includes the Kynamro injection, which is an apo-B synthesis inhibitor for patients with homozygous familial hypercholesterolemia, and for the reduction of low-density lipoprotein cholesterol. It also has a pipeline of 38 drugs in development for the treatment of various diseases, including cardiovascular and metabolic diseases; severe and rare diseases, which include neurological disorders; and cancer.
The company recently agreed to license its developmental blood-thinning drug to a unit of Bayer. It expects an upfront payment of $100 million on the drug, called ISIS-FRXI, and an additional $55 million following a Phase 2 study in patients with compromised kidney function.
The consensus price target is $68.11, and the shares ended trading on Monday at $62.12.
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