The iShares Biotechnology ETF (IBB) is still down nearly 25% for the year, but Alger’s portfolio manager says there are opportunities within this space that can weather a recession.
Zhang’s favourite stock in the biotech space
One such name that pops out to Amy Zhang is Bio-Techne Corporation (NASDAQ: TECH) that she says does everything expected of a biotech company. On CNBC’s “Worldwide Exchange”, the portfolio manager said:
We like to invest in companies that save lives, reduce costs, and increase productivity and Bio-Techne does all of that. What’s more unique is that most of their products are very differentiated. So, they have very strong pricing power.
Zhang expects the Minneapolis-headquartered company to do well both in an inflationary as well as a recessionary environment. The stock is down more than 30% from its all-time high in September 2021.
Why else is she bullish on Bio-Techne stock
Last month, Bio-Techne reported its financial results for the first quarter that topped Wall Street expectations. Explaining further why she’s positive on the Nasdaq-listed company, Zhang added:
It’s probably the most underrated gem in life sciences tools and diagnostics space. It’s one of the highest quality compounders that’s very resilient. So, that’s why we really like the company here.
With over 500,000 products, Bio-Techne serves a wide range of markets, including universities, governments, pharmaceutical, and clinical research. Wall Street, on average, sees a more than 40% upside in TECH.
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