We recently released a list Buy 10 Best Low-cost Biotech Stocks Now. In this article, we will explore Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) position, contrary to other best-promoted biotech stocks.
On May 8, Jefferies' senior biotech analyst Michael Yee appeared on CNBC to discuss how tariffs and policy risks can put pressure on the biotech industry, while iterations may bring buying opportunities once it is uncertain.
Speaking about the wider impact of tariffs on the biotech sector, he said the estimated tariff rate would be about 50%, while negative earnings per share impact would be about -4-5%. According to Yee, the industry faces several challenges that have caused enormous stress and anxiety among biotech investors. One of them is definitely tariffs for specific sectors. 50% estimates are a manageable impact on many biotech companies, but also face other challenges. Another factor is that the most popular countries can drop drug prices by as much as 40% to 50%, thus becoming relevant impacts. Assuming all these effects are in place, there is absolutely an uncertain downside risk for the model.
The point, however, is that many of these stocks fell more than 20-30%, actually trading on a decade-low P/E ratio. So while these uncertainties may appear in the coming weeks or months, stocks are expected to be higher thereafter. If we look back at some other stocks related to taxes, many stocks will obviously be higher. So they fell to attractive valuations, which is why there might be a chance to buy them.
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Yee said this is nothing new. Compared to other baskets, the U.S. drug payments on average are about 40% to 50% of the concept, such as five to ten major developed countries. The country also acquires drugs faster and is home to innovation.
Over the past few weeks, many pharmaceutical company executives have pointed out that most of these countries also face downside problems as a result of R&D investments, and clearly, these countries have not benefited from any of these drugs. However, the U.S. government does negotiate 15-20 drugs each year and will do so over the next decade.
We filtered stock filters, financial media reports and ETFs to compile a list of 50 low-priced biotech stocks and then selected the top 10 of the most hedge fund holders in the fourth quarter of 2024. We obtained emotional data from hedge funds from Insider Monkey's database. This list is sorted in ascending order of hedge fund sentiment.
Note: The data was recorded on May 9th.
Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our quarterly newsletter strategy selects 14 small and large stocks every quarter, returning 363.5% since May 2014, exceeding 208 percentage points (See more details here).
Scientific equipment in laboratory settings reveals the forefront of biotechnology research.
share price: $6.99
Number of hedge fund holders: 45
Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) is a clinical stage biotechnology company that develops gene therapy options for rare pediatric diseases. Its clinical program is a gene therapy based on LVV, which treats Fanconi anemia (FA), a difficult-to-treat genetic disease that causes bone marrow failure and even cancer.
On May 9, Lifesci Capital Analyst Dr. Cory Jubinville at Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) maintains a bullish position and gives a buy rating due to its strategic positioning in competitive markets and its promising development.
Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) is actively advancing its RP-A601 program for PKP2-associated arrhythmic cardiomyopathy (ACM). Despite competition, analysts are optimistic about stocks because their approach involves higher starting doses, which may lead to favorable results and stronger protein expression.
In another report released on May 9, JP Morgan also maintained a buy rating of $44.00 for the stock.
Overall, RCKT Ranked second Among the best low-priced biotech stocks we buy now. Although we acknowledge the potential of RCKT as an investment, our belief lies in the belief that certain AI stocks have greater hope to provide higher returns and do this in a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for AI stocks that are more promising than RCKT but have less than 5 times its earnings, check out our report Cheapest AI stocks.
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Disclosure: None. This article was originally published in Internal monkey.