2018 Outlook: Biotech Stocks Looking Strong for Value and Growth Investors

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Celgene: Disappointing 2017 may bring value for 2018.

Celgene Corp. (NASDAQ: CELG) has disappointed with a drop of about 11% so far in 2017. That drop is due to a 26% decline over the past quarter, and Celgene is valued at about 14 times forward earnings. Analysts have expected upside of about 21% for the coming 12 months.

Celgene shares closed at $102.56, and the consensus target price is $123.97. The 52-week range is $94.55 to $147.17. The market cap is $80.7 billion.

Biogen: Strong gain in 2017 looks more muted ahead.

Biogen Inc. (NASDAQ: BIIB) shares have risen about 22% so far in 2017, and analysts are calling for upside of about 12% for the coming 12 months. Biogen shares have been recently range bound and looking for direction. The stock is valued at about 14.5 times forward earnings.

Biogen shares closed at $319.87, in a 52-week range of $244.28 to $348.84. The consensus target price is $358.15. Biogen has a market cap of $67.6 billion.

Regeneron: Late 2017 pullback may offer value for 2018.

Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) has been a laggard in 2017, with a gain of only about 3%. Its stock has also been rather volatile this year after losing about one-fourth of its value in the past quarter. If analysts were not blindsided by the pullback and are proven correct, Regeneron shares have about 23% in expected upside in the year ahead.

Shares of Regeneron closed at $372.34. The consensus analyst target of $458.78 compares with a 52-week range of $340.09 to $543.55. The market cap is $39.8 billion.

Vertex: Great gains in 2017 could still bring rewards in 2018.

Vertex Pharmaceuticals Inc. (NASDAQ: VRTX) may not have been a great performer in the past quarter after a recent pullback from its highs, but this stock is up almost 88% so far in 2017. Vertex is now valued at about 70 times expected earnings. Even after such big gains earlier this year, analysts are calling for upside of roughly 33% in the year ahead.

Vertex closed at $138.36 a share, which compares with the consensus target price of $183.21. The 52-week trading range is $71.46 to $167.86, and the market cap is $34.5 billion.

Illumina: Did 2017 gains eat in to 2018’s gains?

Illumina Inc. (NASDAQ: ILMN) has generated gains of 65% so far in 2017, but shares have been flat over the past quarter. It is valued at more than 55 times expected earnings, and analysts now are forecasting only 4% upside in the year ahead due to its high valuations against sales.

Illumina closed at $211.06 a share. The consensus target price is $220.40, and the 52-week range is $119.37 to $230.72. The market cap is $30.8 billion.

Alexion: Disappointment today may bring rewards tomorrow.

Alexion Pharmaceuticals Inc. (NASDAQ: ALXN) has lost about 11% for its shareholders so far in 2017, mostly due to a 25% drop over the past 90 days. It is valued at about 19 times expected earnings, but analysts are calling for nearly 50% upside in the coming year.

Shares of Alexion closed at $108.90. The consensus target price of $163.43 compares with the 52-week range of $96.18 to $149.34. Alexion has a market cap of $24.3 billion.