Growth stocks have been outpacing value and dividend stocks since 2008, and this performance gap has only widened as the pandemic's impact has waned. Technological breakthroughs are opening new markets in high-demand areas, fueling investor interest in a wide array of next-generation platforms.

Biotechnology, among the best-performing industries until interest rates flipped in 2022, is rife with top growth stocks trading at rock-bottom valuations. For instance, Wall Street analysts think Avidity Biosciences (NASDAQ: RNA) and Larimar Therapeutics (NASDAQ: LRMR) could deliver gains over the next 12 months of 65% and 227%, respectively. Are they right to be so optimistic?

Here is a rundown of each biotech stock's value proposition and risk profile.

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Source Fool.com