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Power Play: Making money in biotech

Employees at Biogen Idec in Cambridge, MA
Suzanne Kreiter | The Boston Globe | Getty Images
Employees at Biogen Idec in Cambridge, MA

One of the hottest sectors this year is biotech, up 14 percent year-to-date even with the recent market sell-off.

Hugh Johnson, chairman and chief investment officer at Hugh Johnson Advisors, tells CNBC's "Power Lunch" on Tuesday, he still sees opportunities in biotech.

"This continues to be the best industry group posting ongoing positive relative performance and very sound fundamental prospects despite the Biogen outlook downgrade," Johnson said.

Read MoreCramer: Are high-reward biotech bargains worth it?

Shares of drug maker Biogen are down 20 percent since the company slashed its outlook on July 24 and Johnson sees this as a buying opportunity.

"Biogen, Celgene, and Gilead continue to be strongly recommended," Johnson said.

He has a $405 price target for Biogen, $175 for Celgene and $144 for Gilead Sciences.

Biogen, Celgene and Gilead are all higher during trading.