Yesterday, I explained how timing is everything when it comes to successfully investing in biotech companies for outsized returns.
Well, the timing just happens to be perfect for two more biotech stocks that just popped on my radar.
Here they are…
No. 2: The “True Human” Antibody Technology Company
XBiotech Inc. (NASDAQ: XBIT) is a clinical-stage biopharmaceutical company headquartered in Austin, Texas.
The company discovers and develops “true human” antibody technology to treat a variety of diseases, including a therapeutic antibody as a treatment for cancer.
This is one of my top small cap biotech stock to buy now because the company’s recent Phase II trials look promising, meaning they’re one step closer to FDA approval. All it needs to do is pass Phase II and Phase III, which could happen by early 2021.
At the same time, XBIT already has solid profits from other drug sales. In fact, the company has one of the lowest 12-month trailing price-to-earnings (P/E) ratios of any firm its size. A low P/E ratio essentially means you’re paying less for each dollar of profit generated.
Since the company has $0 in debt and massive earnings relative to its tiny $534 million market cap, profits can be returned to shareholders in the form of dividends and buybacks.
The company went from losing $21 million in fiscal 2018 to profiting $668 million in 2019.
So, that gives it a 12-month trailing P/E of 0.8 today. Anything under 1.0 is considered low and makes the stock a “strong buy” in my humble opinion.
Back in January, XBIT announced it will use much of its 2019 profits to repurchase up to $420 million of its own shares.
XBiotech also has new 30,000 square foot infection disease R&D facility on the way. That will allow the company to develop significantly more monoclonal antibody medicines for cancer patients.
The new facility will in turn boost XBIT’s net income significantly and the stock could easily double once its fully operational. With those extra profits, I expect the company to begin paying a dividend to its shareholders.
The #1 Biotech Stock Of 2020
Jeff Brown is arguably America’s No. 1 most accurate technology investor.
In 2015, he singled out Bitcoin before it shot up almost 100x…
He also recommended the No. 1 tech investments of 2016, 2018, and 2019…
And—this year—he’s already picked two of the three top-performing stocks!
Recently, Mr. Brown sat down with Chris Hurt to discuss the state of the stock market…
And discuss his new No. 1 pick.
As you’ll see, it’s in an industry that billionaires like Jeff Bezos and Warren Buffett are flocking to…
(In fact, Buffett recently dumped $800 million of Apple stock to invest in this!)
It’s also set to grow an astonishing 5,900%.
If you have any interest in tech stocks, you can’t miss this special interview. And the new report Jeff Brown put together.