Biotech stocks such as Biogen Idec Inc (NASDAQ:BIIB), Regeneron Pharmaceuticals Inc (NASDAQ:REGN), Gilead Sciences, Inc. (NASDAQ:GILD) and Celgene Corporation (NASDAQ:CELG) seem to be among the favorites of Jim Cramer. He discussed these stocks in the recent edition of “Mad Money” of CNBC and he explained what might push these stocks ahead in the second half of the year.
He said that though the stocks had strong fundamentals and terrific growth stories, it didn’t stop their stocks from getting slammed on the market. However these stocks have rebounded in the past couple of months. Stocks such as Gilead Sciences, Inc. (NASDAQ:GILD), Biogen Idec Inc (NASDAQ:BIIB), Regeneron Pharmaceuticals Inc (NASDAQ:REGN) and Celgene Corporation (NASDAQ:CELG) have rebounded over 15% on an average in the last three months.
Cramer initially started with the analysis of Biogen Idec Inc (NASDAQ:BIIB) went down to $317 from $331 in a couple of day and it has history of setting new peaks after dips. He said that the stock might reach a new high once it hits $334 mark.
He also spoke how Regeneron Pharmaceuticals Inc (NASDAQ:REGN) and he had actually recommended the stock when it was trading at around $5. The stock has now crossed $310 mark and looking good. However it’s facing heavy resistance at $315 and not going above that for some time. The new drug the company has made to treat eczema has got positive reports and this might act as a catalyst and push the stock further according to Cramer and he thinks once Regeneron Pharmaceuticals Inc (NASDAQ:REGN) crosses the barrier of $315 it can easily hit the all-time high of $352.
“How about Regeneron? Whoo this is controversial. It’s been one of the biggest pointers in Mad Money’s history” Cramer stated.
Gilead Sciences, Inc. (NASDAQ:GILD) was the next stock in focus and Cramer thinks that the stock has potential to stay on upside. The stock took a beating in April this year and it has not looked back since then. It is not at an all-time high of over $88 and looking good. He thinks that Gilead Sciences, Inc. (NASDAQ:GILD) might cross $100 mark soon. However few analysts believe the stock is overbought and it may pull down soon.
Celgene Corporation (NASDAQ:CELG) has been producing cancer treating drugs and the stock saw a dip in April and it has been on an upside since then. Cramer reported that the stock can actually go beyond $100 though the stock looks overbought to few analysts.
So Cramer thinks that all these biotech stocks such as Gilead Sciences, Inc. (NASDAQ:GILD), Biogen Idec Inc (NASDAQ:BIIB), Regeneron Pharmaceuticals Inc (NASDAQ:REGN) and Celgene Corporation (NASDAQ:CELG) have potential to go on an upside though few analysts feel that a couple of these stocks look overbought.
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