4 Biotech Stocks To Buy, 1 To Avoid For Now

By Mark Goldstein The biotech sector has always been risky due to the fact that its product pipeline is affected by FDA approval and risks in the development of products. At the same time, this sector is driven by many catalysts, including key acquisitions of small, highly specialized companies and quickly developing drug pipelines. From a stock perspective, the biotech sector traditionally provides high returns. In the following article I will analyze five biotech stocks that look promising for investors right now based on several positive catalysts. Gilead (GILD) The current stock price is around $50. Gilead (see chart below) has been relatively volatile with highs from February to July 2011, partly thanks to its acquisition of the small oncology company, Seattle based Calistoga Pharmaceuticals, along with the acquisition of New Jersey biotech company Pharmasset for $11 billion in the same year. Pharmasset has a promising drug candidate against Hepatitis C, which would for the first time do away with the need for Interferon. With a 70% gross margin, close to $ 8 billion in revenue and $ 2.8 billion operating cash flow, Gilead is one of the jewels of the biotech sector. Taking into account Gilead’s EPS of 3.93,…