Jefferies told investors to buy select biotech names during this pre-election plunge due to attractive valuations and solid fundamentals.
"Though biotech volatility will likely continue into the election, at near-historic low multiples and with HC policy concerns valid but likely overstated, we see buying opp'ties," analyst Brian Abrahams wrote in a note to clients Tuesday.
"Biotech multiple [is] even more discounted vs. S&P since our last check — history suggests additional downside may be limited."
The iShares NASDAQ Biotechnology ETF is down 21.5 percent this year and has fallen 8 percent for the month as of Monday's close.
Abrahams said Donald Trump's recent troubles are raising concerns about a Democratic congressional sweep, which along with a Hillary Clinton victory could mean "more draconian drug-pricing changes." However, he cited how the average valuation of the four largest biotech companies (Amgen, Biogen, Celgene and Gilead) at 12 times earnings versus the S&P 500's 16.6 times earnings is already discounting the downside political risk.
Here are four buy-rated biotech stocks Jefferies recommends to take advantage of the call.