A healthy stock market needs at least one strong sector leading it higher. Unfortunately, my analysis showed we were in a leaderless market. But things have changed. One red-hot group of stocks is soaring and looks to be in the early stages of a multi-month, or even multi-year rally.
Why This Group Of Stocks is Soaring
This particular group of stocks relates to some huge news that just came out: Scientists seem to have found a breakthrough treatment for Alzheimer’s, slowing progression of the disease by almost 30%. Biogen (NASDAQ: BIIB) (Biogen Inc – $280.43 6.87 (0.02511%) and its Japanese partner Eisai (OTC: ESALY) (Eisai Co Ltd – ADR – $59.64 2.34 (0.04084%) ) have developed lecanemab, a drug to treat Alzheimer’s. They’re claiming this new treatment could mean “the beginning of the end” of Alzheimer’s disease—a devastating neurological disorder that currently has no cure.
The news sent Biogen shares up as much as 21% on Monday—the biggest one-day gain for the stock since 1999. Shares of Eisai were up as much as 16%. The news also sparked a rally in other Alzheimer’s drug developers, including Merck (NYSE:MRK), Johnson & Johnson (NYSE:JNJ), and Eli Lilly (NYSE:LLY). Collectively, these stocks are up an average of 10% since Monday morning—crushing the overall market during that same time period.
One up and coming stock to watch is MetAlert (OTC: MLRT) MetAlert makes tracking medical devices for Alzheimer’s and dementia patients and seems to be growing quickly.
MetAlert (OTC: MLRT) develops technology like GPS trackers in insoles that can help alert the geographical location of a patient with dementia and Alzheimer’s disease. This technology has also been used for children, as well as people with other neurological disorders like autism. While countless pharmaceutical companies are looking towards the future, MetAlert is helping patients with dementia and Alzheimer’s and their caretakers with living an easier life today.
What This Means For Investors
Alzheimer’s drugs are notoriously difficult to develop—so this news is a huge development in the fight against the disease. And with an estimated 50 million people worldwide suffering from Alzheimer’s, there’s huge potential for these drugs and medical technologies to become blockbusters.
If you don’t own any biotech stocks, now may be the time to start building a position. But if you want to get ahead of this rally, I recommend taking a closer look at Biogen and Eisai.
Conclusion:
The news of a potential Alzheimer’s care sent Biogen, and Eisai shares soaring. In addition products that support Alzheimer’s patients and their loved ones could be the next soaring stocks, such as MetAlert. This could be the beginning of a multi-month, or even multi-year rally in biotech stocks. If you don’t own any biotech stocks, now may be the time to start building a position in this red-hot group of stocks.
Featured: $BIIB $ESALY $MRK $JNJ $LLY $MLRT
