Wednesday's IBD 50 Stocks To Watch pick is biotech play Argenx, which is currently sitting in a buy zone and nearing a new high.
In late September, Amgen presented "underwhelming" results for a potential competitor to Argenx's Vyvgart in treating an autoimmune disease. That sent Argenx stock surging near new highs.
Argenx's Vyvgart is one of the most successful gMG treatments. Generalized myasthenia gravis, or gMG, is a neuromuscular disease that causes muscle weakness and fatigue.
Vyvgart sales more than doubled last year, hitting $1.19 billion. That's partially because Argenx continues adding onto the approved uses for Vyvgart, and because it's available for some conditions as an under-the-skin shot vs. an intravenous infusion.
On July 25, Argenx announced it earned 49 cents per share vs. a year-ago loss of $1.69 per share. Revenue jumped 74% year over year to $489.4 million — a slowdown from earlier quarters but still major growth.
After posting a second-quarter profit, the company is on its way to profitability. Analysts expect it to narrow its 2024 loss to 84 cents per share before turning profitable in 2025, with EPS of $5.79, according to IBD MarketSurge.
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Argenx Stock In Buy Range
Argenx stock is in buy range above a 540.49 handle entry in a deep base that spans back to July 2023 following a Sept. 5 breakout move. Further, shares are approaching a 554.74 alternate entry, which is the 52-week high.
A technical factor to watch is the stock's relative strength line, which is rebounding after a slide in September. That's a positive signal of stock market outperformance in recent sessions, but look for that technical indicator to hit a new high in the near future if the stock is able to decisively break out to new highs.
Because it's been unprofitability, Argenx has a mediocre 81 out of 99 IBD Composite Rating, according to IBD Stock Checkup.
Further, market risk has abated in recent weeks, and investors should be looking to maintain an exposure level of 80%-100%. And Argenx stock is among the best ideas to consider, especially if it makes another breakout to new highs.
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Other Stocks To Keep An Eye On
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to buy and watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Meta Platforms | 542.81 | Cup base | |
| Taiwan Semiconductor | 175.45 | Cup with handle | |
| Ryan Specialty | 69.03 | Cup base |
Source: IBD Data as of Oct. 2
Follow Scott Lehtonen on X at @IBD_SLehtonen for more on the best stocks to buy and watch and the Dow Jones Industrial Average.
