Biotech stocks typically do not follow market dynamics, but instead beat to the sounds of their own drum. These stocks are known for their potential to become an extremely lucrative avenue to their investors. Massive spikes in share prices can be seen with positive catalysts, such as favorable trial results or regulatory approvals is what continues to draw investors to the space.
The sector itself has been on fire this year, with many of its exchange traded funds tacking on double digit gains. For instance, the Health Care Select Sector SPDR (XLV), the largest healthcare ETF by assets, increased about 4.3% last month, bringing its yearly gain to about 11.3% to date. The rising advancements throughout the sector continue to contribute towards the industry’s growth.
With an industry that is growing at a rapid pace, biotech stocks provide another means, to potentially generate returns apart from the general market. This is especially true during this month. Since 1950, the month of September has historically been the worst performing month of the year for the Dow Jones Industrial Average and the S&P 500. Keeping this in mind, here are a few biotech stocks to watch this month that may have upside potential.