Earlier this week we reported that biotechnology stocks are trying to break out. Exactly one day ago we published a hot tip in the biotechnology space, Repligen Corp (REGN), in our article 3 biotechnology stocks to buy on this biotech breakout. Today, the stock is trading 10 pct higher.
Things are moving fast in the biotech space. It is known to be a very volatile sector. We did not expect them to move “that” fast.
Note that Reuters joined the group of financial media reporting on the biotech breakout (generic news). When it comes to individual names Benzinga did not succeed in tipping any interesting stock tip other than some generic biotech names.
After reviewing more than 100 biotech stocks this week we concluded that Repligen was the hottest stock in the mid-cap biotech space because of several reasons.
First, the chart setup is amazing. The biotech index is still way below its all-time highs. However, Repligen managed to climb to its highs, which suggests a sector leader.
Second, financials of the company are solid. Headlines revenue and earnings are growing steadily, that is exactly what investors want to see when picking individual names.
Third, it is a mid-cap stock, which mostly means they are as risky as small caps but still move faster than large caps. That’s an ideal combination.
Interestingly, after we tipped this stock yesterday it is moving sharply higher today. It even rallied almost 20 percent today, and it is about to close the week at close to 10 percent above yesterday’s close. There is potential in this biotech stock!