Investors encouraged to buy undervalued biotech stocks

Investors are being encouraged to consider buying stocks that are currently valued very low. Three companies highlighted are Altimmune, Moderna, and Pfizer. Analysts from Motley Fool believe these stocks could provide good returns. Altimmune is a small biotech company working on a weight loss drug called pemvidutide. In trials, participants lost an average of 15.6% of their body weight using this drug. The market for weight loss treatments could reach $200 billion by 2031. However, Altimmune is not fully guaranteed success, and they will need to raise cash to continue operations. Their current market value is under $500 million. This stock is high risk but might be a good investment for those seeking big rewards. Moderna gained fame for its COVID-19 vaccine, but its stock value has sharply declined since the pandemic's peak. The company’s shares have dropped 81% over the past three years. Despite this, Moderna has made progress with other vaccine candidates, including ones for respiratory syncytial virus and a combination flu/COVID vaccine. They are also developing a personalized cancer vaccine with Merck. Some experts believe Moderna remains a strong buy due to the potential of its mRNA technology. Pfizer is known for its COVID-19 products, but its stock is currently undervalued compared to other pharmaceutical companies. Pfizer has a low forward price-to-earnings ratio of about 8.8. Despite losing some patent protections in the future, the company expects growth from new products, including treatments for migraines and cancer. Pfizer has also invested heavily in research and offers a generous dividend of 6.58%. This dividend could provide good returns even without significant stock price increases.