Biotechnology is an umbrella term used to describe various companies and industries. While these businesses have unique characteristics, they also have many similarities. For example, all biotech stocks tend to be volatile, and most are smaller companies that are hard for the average investor to access.
While these factors make it difficult for most individual investors, they also make biotech stocks a fantastic opportunity for investors who know how to navigate this niche market.
Investors looking at biotech stocks should understand how this industry operates and its different sub-sectors. Then, these stocks can be further broken down based on company size, risk profile, industry exposure and other factors.
Here we look at some of the top biotechnology stocks you should consider adding to your portfolio if you want exposure to this fast-growing sector.
