News Formal

Biotech stocks are an unappreciated way to profit from lower rates, Goldman says

  • 📰 CNBC
  • ⏱ Reading Time:
  • 22 sec. here
  • 15 min. at publisher
  • 📊 Quality Score:
  • News: 57%
  • Publisher: 72%

Jyong Biotech Ltd Notícia

Investment Strategy,Markets,Pharmacyte Biotech Inc

As investors await the Fed rate decision Wednesday afternoon, Goldman highlighted to clients an overlooked group of stocks poised to benefit from the move.

As investors await the Federal Reserve rate decision Wednesday afternoon, Goldman Sachs highlighted to clients an overlooked group of stocks poised to benefit from the move. Biotechnology stocks offer an under-the-radar and unappreciated way to profit from the central bank's looming campaign to start cutting the cost of borrowing, according to Goldman Sachs.

Rates play a larger role than growth in driving share prices in biotechnology ," Goldman told clients. Shares in many speculative, small capitalization biotech companies have an "option-like structure" that "inherently creates interest rate risk. With little to no profitability today, but expected profitability if trials are successful, biotechnology cash flows are generally long duration," Flood wrote.

 

Obrigado pelo seu comentário. Seu comentário será publicado após ser revisado.
Resumimos esta notícia para que você possa lê-la rapidamente. Se você se interessou pela notícia, pode ler o texto completo aqui. Consulte Mais informação:

 /  🏆 12. in BR

Brasil Últimas Notícias, Brasil Manchetes

Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.

Our approach to the stock market heading into the Fed's big Wednesday decisionEvery weekday, the Investing Club releases the Homestretch; an actionable afternoon update just in time for the last hour of trading.
Fonte: CNBC - 🏆 12. / 72 Consulte Mais informação »