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Ishares Nasdaq BiotechnologyIBBTOP PICKJun 28, 2017Stock price when the opinion was issued
As of Jun 18, 2026. Market Open.
Healthcare sector outlook The sector has had a great bounce since March lows. A good way to play the COVID vaccine race. IBB is the best-known biotech ETF, but he does the XBI, because it's equal-weighted. XBI has had a great bounce. It's a great sector with reasonable valuations. The race for a COVID vaccine is a tailwind, of course. Biotech is a slow-growth area, which benefit from interest rates staying very low for the long term.
The period of seasonal strength for biotech stocks is basically from mid-June to mid-September. The average gain for the NASDAQ Biotech technology index is about 8.17%, and has been positive 70% of the time since 1993. In this past week, it has broken out above the substantial trading range between $240 and $300. With the breakout, we can expect the magnitude of the range of about $60, to propel it to the upside by about $60, so the upside target is about $360.