5 Top Biotech Stocks to Buy on Sale

Even though 2016 got off to a rough start, the average stock in the S&P 500 is trading at about 23.8 times trailing earnings — far above its historical average of about 16.7 since its inception. So you might be surprised to learn the average stock in the iShares Nasdaq Biotechnology Index (NASDAQ: IBB) with profits to report is trading at just 20.7 times trailing earnings, which is significantly cheaper than the broad market.

Biotechnology is generally considered a high-growth industry, and a lower-than-average trailing multiple suggests there are plenty of biotech stocks to buy on sale. Yet just one of my favorites,Gilead Sciences (NASDAQ:GILD), looks cheap based on trailing earnings right now.

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