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.
Ireland Ireland Latest News, Ireland Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CNBC - 🏆 12. / 72 Read more »