A frequent criticism of biotechnology stocks is that they usually trade at rich multiples, making the industry appear expensive not only to the rest of the healthcare sector, but the broader market as well. That was true when biotechnology stocks and exchange traded funds were making new highs through the middle of 2015.
Applying that logic would imply that after significant losses that saw some marquee biotech enter or flirt with bear markets, these funds and their holdings could be inexpensive relative to historical norms. Data indicate that biotech stocks are in fact inexpensive relative to their illustrious history as one of most expensive corners of the equity market.
Investors that see a valuation opportunity with large-cap biotechs and are willing to bet on that thesis can consider the Market Vectors Biotech ...
/www.benzinga.com/general/biotech/16/03/7725889/a-rare-opportunity-with-a-biotechnology-etf alt=A Rare Opportunity With A Biotechnology ETF>Full story available on Benzinga.com
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