Biotech Sector Gains Momentum as AI Rally Pauses, Zacks Highlights Key Stocks

Industry
โดย Zacks Investment Research·Read original
Summary · why it matters

The biotech sector is quietly emerging as a new market leader while the AI-driven semiconductor rally shows signs of exhaustion, according to Zacks Investment Research. The Health Care Sector ETF XLV hit record highs this month, and the Biotech ETF XBI is approaching levels not seen since 2021, fueled by a stronger drug development cycle and defensive rotation. Among standout names, Eli Lilly remains the clear leader, while mid-cap players like Exelixis, PTC Therapeutics, Fortrea Holdings, and Illumina are gaining traction. PTC Therapeutics surged roughly 75% since its drug Sephience was approved in July 2025, with first-quarter revenue reaching $273 million, and was upgraded to a Zacks Rank #1 (Strong Buy) on July 8. Fortrea Holdings, a contract research organization, rebounded from around $4 to the mid-teens on backlog growth and cost cuts, and was added to the Zacks Rank #1 list on July 7. Exelixis offers a blend of profitability and growth at roughly 16x forward earnings, while Illumina, the genomics leader, has recovered about 46% year to date after an 80% tumble.

Impact on stocks 5

Biotech & Genomic Medicine▲ · 5 stocks
PTC Therapeutics Inc
PTCT
▲ PositiveDemandrelevance

PTC Therapeutics surged ~75% after its drug Sephience was approved in July 2025, with Q1 revenue reaching $273 million.

Fortrea Holdings Inc.
FTRE
▲ PositiveDemandrelevance

Fortrea Holdings rebounded on backlog growth and cost cuts, indicating increased demand for its contract research services.

Illumina Inc
ILMN
▲ PositiveDemandrelevance

Illumina has recovered 46% year to date, driven by a stronger drug development cycle and defensive rotation into biotech.

Exelixis Inc
EXEL
▲ PositiveCapitalrelevance

Exelixis is highlighted as offering profitability and growth at roughly 16x forward earnings, implying attractive valuation.

Eli Lilly and Company
LLY
▲ PositiveDemandrelevance

Eli Lilly is cited as the clear leader in the biotech sector gaining momentum from a stronger drug development cycle.

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