BeiGene is Thursday's selection for IBD 50 Stocks To Watch despite fears President Donald Trump's tariffs could hit the China-based biotech company. In the face of volatility, the stock has formed an eight-week-long base with a proper buy point and is headed higher after gapping up to the 50-day moving average on Tuesday.
The weekly chart on IBD MarketSurge shows more strength and has a blue dot. That indicates that the relative strength line, which compares the stock against the benchmark S&P 500 index, is at a 52-week high. However, near-term risks from sector tariffs on pharmaceutical companies or ongoing trade wars with China should make investors tread cautiously.
A sell-off in early April hasn't eroded the stock's performance compared with other stocks in the Investor's Business Daily database. Its Relative Strength Rating has slipped just one point from 96 to 95, out of a best-possible score of 99.
The stock is in an early-stage consolidation pattern that has a buy point of 287.88. Shares also offer an earlier buy point at 284.15. But going back to early 2023, BeiGene stock hit resistance around 280.
BeiGene Developing Treatments For Cancer
BeiGene develops treatments for cancer. The holding company has operations through subsidiaries in the U.S., China, the U.K., Switzerland and Australia. Its ordinary shares are listed on the Hong Kong stock exchange.
First-quarter results are due May 7. Analysts polled by FactSet estimate a loss of 62 cents per share on sales of $1.1 billion. But they also see the company turning profitable for the remainder of the fiscal year with triple-digit earnings growth.
The Street also is bullish on future profit growth in 2026 and see earnings per share rising 332% to $5.22.
BeiGene stock holds a Composite Rating of 80, but its EPS Rating suffers from its record of losses and lags at 23. But that isn't stopping big institutional names from participating in its growth.
Funds have been net buyers of the stock over the past 13 weeks, going by the Accumulation/Distribution Rating of B+. In the IBD mutual fund index, the T. Rowe Price New Horizons Fund (PRNHX) and the Fidelity Contrafund (FCNTX) hold shares of BeiGene stock.
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