Biotech stocks have been on fire. The industry has risen 40 percent in the past year, and added 2.3 percent on Friday alone. This after drug giant Biogen reported positive results for a new Alzheimer's drug, leading its shares to jump 10 percent.
And some traders say that the rally still has legs.
"It really can keep rallying like this, because it's all predicated on the real tail wind of fundamentals here," said David Seaburg, head of equity sales trading at Cowen and Co.
"Until you show us a better sector that shows more promising growth, money's going to continue to flow into biotech," he said Friday on CNBC's "Trading Nation."
Indeed, even after Friday's announcement and subsequent rally, the stock's forward price-earnings ratio is just 27, Seaburg points out.