Small-cap, clinical-stage biotech companies are only suitable for some investors. These stocks are often extremely volatile, because drug development is a slow and long process. Their stock prices can fluctuate dramatically due to news about clinical trials and regulatory approvals.
However, if the trials are successful, they could result in significant stock price gains. Biotech companies' innovative approach and focus on unmet medical needs make a compelling case for long-term investors willing to endure short-term volatility. Let's look at two standout stocks that Wall Street considers worthy of a "strong buy" rating.
