Biotechnology stocks offer an under-the-radar and unappreciated way to profit from the central bank's looming campaign to start cutting the cost of borrowing, according to Goldman Sachs.
Investors may have already begun to anticipate the effect of lower rates on some biotech companies.
IBB .SPX mountain 2024-06-30 The iShares Biotechnology ETF has risen more than twice as much as the S & P 500 this quarter.
The iShares Biotech ETF is up 7.7% this quarter while the Nasdaq Biotech Index has advanced 7.4%, more than double the 3.2% gain in the S & P 500 since June 30.
Year-to-date, Regeneron is up 30.6% and Vertex by 18.3%, both outperforming the 18.1% rise in the S & P 500.
Persons:
Goldman Sachs, John Flood, Goldman, Flood, Regeneron
Organizations:
Biotechnology, Federal Reserve, Gilead Sciences, Nasdaq Biotechnology, IQVIA Holdings, Regeneron Pharmaceuticals, Amgen, Vertex Pharmaceuticals, iShares Biotech, Nasdaq Biotech
Locations:
Gilead