3 Top Biotech Stocks to Buy in March
What you might find surprising is that biotech stocks easily outperformed the Dow Jones Industrial Average, the Nasdaq Composite, and the S&P 500 indices during the first wave of the so-called coronavirus crash last week. Generally speaking, biotech equities are viewed as one of the riskiest class of assets, meaning that they probably should have been among the first groups of equities to be sold off during a widespread market correction. But a broad-based biotech rout has yet to materialize. Why?
There are three favorable tailwinds likely responsible for biotech's stubborn resistance to the ongoing coronavirus correction. First up, several biotechs are expected to play a critical role in managing the outbreak of the COVID-19 illness. Secondly, it's an open secret that most large-cap biotechs are currently looking to augment their clinical pipelines and product portfolios through mergers and acquisitions. Eli Lilly, Gilead Sciences, and Novartis have even admitted that they may pull the trigger on multiple acquisitions in 2020 and beyond. Thirdly, the pace of innovation within the industry remains at fever pitch. Over the next few years, biotech is expected to introduce game-changing therapies for a laundry list of rare diseases, cancers, infectious diseases, and chronic ailments such as arthritis and diabetes.
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Source Fool.com
