CNBC Pro

Here are Jefferies' favorite hot biotech plays

Share
Rafe Swan | Getty Images

Jefferies has a bullish view on the biotechnology sector, releasing a list of stocks it says are poised to climb entering 2018.

"We are fundamentally positive on the Biotechnology sector," wrote Jefferies analyst Michael Yee in a note on Tuesday, noting it has lagged other sectors, has been underweighted by institutions, and is not expensive versus other sub-groups.

Though large-cap biotech has underperformed the market due to political uncertainty, Yee is confident investors will start to like what they see in the coming months.

The analyst named three key factors in his optimistic assessment: investors will come back to health care stocks as part of a "rotation and reversion" from other sectors, there are low-expectation set-ups in biotech, and consensus earnings estimates remain beatable for key sector players.

Here are a few of Jefferies' ideas in biotech.

More In Pro News and Analysis

CNBC ProCramer sells his charity’s Disney position for the first time in 16 years
CNBC ProCramer reveals how low bitcoin would have to go for him to start buying again
CNBC ProBTIG strategist Julian Emanuel is cautious and playing defense with these types of stocks