I love investing in biotech stocks because they have single handedly propelled my model portfolio to massive outperformance over the years.
Biogen (NASDAQ: BIIB), Regeneron Pharmaceuticals (NASDAQ: REGN), and Gilead Sciences (NASDAQ: GILD) have been some of my biggest winners over the past decade.
But now with market caps of $43 billion, $60 billion, and $80 billion, respectively, Wall Street has caught on and limited the potential future returns by bidding up their stock prices.
So, allow me to specify… I love investing in unknown small-to-medium-sized biotech companies because they give you the best opportunity to significantly outperform any market cycle.
See, they’re not necessarily correlated with the broader market because investors value these stocks on their underlying fundamentals i.e. their ability to create new drugs that solve massive human health problems with FDA approval.
Take a look at my biggest biotech winner this year: Novavax, Inc. (NASDAQ: NVAX).
While the broader market was faltering due to the unknown effects coronavirus would have on the economy back in March, NVAX used this as an opportunity to work on a vaccine that could end the pandemic.
The stock surged from about $7 per share in March all the way to $190 by August for a 2,614% return for investors who timed it perfectly.
Now, I wasn’t able do that unfortunately (practically nobody can). But I’ll take the 527% return I did generate in just about three months.
The single most important factor to consider when investing in biotech companies is timing – when to get in and when to get out.
To do that, you have the analyze the likelihood that the biotech’s newest drug will be successful and earn FDA approval in the quickest time possible.
And I think I found just the pick.
It’s a medium sized biotech company worth about $7 billion today.
Here it is…
My No. 1 Biotech Stock to Own Today
Like I said before, timing is everything when it comes to picking the best biotech stock.
And I really think the timing is perfect right now for one mid-sized biotech company – Acadia Pharmaceuticals Inc. (NASDAQ: ACAD) – to deliver investors 1,000% returns.
Here’s a brief summary of what you need to know about the company now…
Acadia develops and commercializes biopharmaceutical products to address central nervous system disorders.
The company aims to discover small molecule drugs that address disorders such as Parkinson's, Alzheimer's, and schizophrenia.
It already has one drug approved by the FDA that helped it generate $339 million last year.
And it has another drug in the pipeline now that’s expected to pass soon and help the company generate $2.5 billion by 2024.
Where I first discovered this stock…
I was perusing some of my favorite finance sites, and I happened upon this video, where Legendary Analyst, Matt McCall predicted his #1 Stock of 2020.
Here's what he had to say about it:
“I'm confident that this is my next big winner — and I haven't felt this way since back in 2009. This company is on the cutting-edge of one of the greatest medical breakthroughs of the 21st century. You can't afford to ignore this.”
Before you take any action, please watch McCall's latest prediction.