Editor's note: TipRanks is an independent tech company that ranks analysts and financial bloggers based on the performance of their recommendations.
Biotechnology stocks are on pace for their seventh consecutive year of gains and their run may not be over, according to some analysts.
Since biotechnology stocks are volatile in nature, analysts must be acutely aware of all FDA proceedings and clinical trials, which can make or break a stock.
Read MoreCiti's favorite stocks for 2016
So, with 2016 on the horizon, TipRanks compiled a list of the 10 best biotech analysts on Wall Street who consistently generated positive returns with their stock ratings.
The rankings are based on the following factors:
- The average return of every recommendation given by an analyst in the year after the rating. If an analyst says "buy" Apple, the return of the call is measured in the following year.
- The success rate of the analyst or how many of the analyst's buy/sell recommendations generated positive returns in the following year.
- The significance of the data or how many ratings each analyst has. More ratings provide higher significance; therefore the analyst is more likely to be ranked very high or very low.
Based on more than 400,000 ratings that were measured since January 2009, here are the 10 names you must follow in 2016.
10. Rohit Vanjani, Oppenheimer
Covers biotech companies such as Insys, OvaScience and ANI Pharmaceuticals. He has been especially successful recommending shares of ANI, earning an average return of 38.5 percent on his 28 ANIP calls over the last two years. Vanjani's average return for all his buy/sell ratings is 19.8 percent. Out of his 125 total ratings, 78 have generated a positive return, resulting in a 62 percent success rate.