Investors have been flocking to biotech stocks this year, with the IBB, the ETF that tracks biotech stocks, up nearly 16 percent. But with high returns come high valuations, except in one name, according to a strategist who closely watches the field.
On Wednesday afternoon, Celgene was trading at 20 percent below its average analyst price target. Its share price was just over $113, compared with FactSet's average price target of $136.96.
"This is one of the largest gaps we've seen [in Celgene] over the last year," and that makes it a bargain relative to other names in the space, options expert Stacey Gilbert said on CNBC's "Trading Nation."