"Genentech (NYSE: DNA), the world leader in cancer treatment, has been weak following its third quarter earnings report," notes biotech sector expert John McCamant.
In his The Medical Technology Stock Letter, he explains, "What we are seeing with DNA's stock represents an irrational overreaction by Wall Street, and one that should be taken advantage of by investors."
The advisor notes, "Starting with their earnings, DNA reported non-GAAP operating revenues of $2.91 billion, and U.S. product sales of $2.2 billion, for the third quarter. These figures represent an increase of 22% and 18%, respectively, over the same figures reported during last year's third quarter.
"As such, we are pleased with the growth that DNA has continued to produce. However, because revenue came in a little shy of analysts' consensus expectation, the stock has sold off. We would note one glaring positive which DNA just isn't getting much credit for anymore. That is, even at its already huge size, the company still expects to produce impressive growth for the full year (and in the years to come)."
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