While most investors have been focused on tech and tariffs, another powerful trend is quietly gaining momentum: biotech stocks are surging again. After a big breakout last week, the group is holding up better than the overall market - a rare sign of strength in a volatile environment.

Biotech has always been considered one of the riskier corners of the market. But right now, it’s showing resilience that even large-cap indexes can’t match. Over the past six months, the Nasdaq Biotechnology Index has climbed 25%, while the S&P Biotech Select Industry Index has soared 37% - nearly doubling the S&P 500’s 23% gain over the same period. That’s a clear sign investors are rotating back into growth and innovation.

The SPDR S&P Biotech ETF (XBI) - one of the sector’s best barometers - is up nearly 10% since September 25 and 17% for the year, compared to the S&P 500’s modest 0.7% rise since that same date. Add to that a steady stream of merger and acquisition announcements, and you’ve got real tailwinds forming.

This strength comes after a brutal five-year stretch. Biotech stocks exploded in 2020 amid pandemic optimism, then crashed by more than 50% when the bubble burst in early 2021. Too many low-quality IPOs and rising interest rates drove investors away. But now the tide has turned.

Fears around the Trump administration’s drug-pricing agenda appear to be easing, and the prospect of interest-rate cuts could send more capital flowing back into “risk-on” sectors like biotech. And perhaps the biggest catalyst of all - big pharma’s desperate need for new blockbuster drugs - means we could see even more M&A activity ahead.

Biotech is back - and unlike the hype-driven rally of 2020, this one looks built to last.

The smartest investors are already positioning ahead of the next biotech boom — and a few early movers are flashing breakout signals right now.

Breaking news: China just walked away from key U.S. trade talks —
and markets are reacting fast.

Most investors see chaos… I see opportunity.

Because history shows every tariff cycle creates massive winners —
the companies positioned on the right side of the trade war.

In my latest video, I reveal the top “Tariff War” stocks set to surge as America
doubles down on manufacturing, energy, and supply-chain independence.

Watch it now before Wall Street catches on.

I’ve identified several biotech stocks that sit right at the center of this new breakout — companies driving the next wave of medical innovation and investor momentum.

These opportunities will form the foundation of a brand-new, long-term NXT Core portfolio that’s being carefully built for members right now.

Here’s an early look at two biotech stocks currently on the NXT Core watchlist — both showing the kind of strength and growth potential we look for.

NXT Core members will be the first to know if these stocks officially earn a place in the new portfolio.

Ascendis Pharma (ASND) is a $12 billion company that is on the verge turning its first annual profit next year. The consensus estimate is for $3.23 per share in 2026 and surging up to $19.50 by 2028. The company focuses on rare diseases using its TransCon-based therapies. The chart is just as impressive – in a strong uptrend and pulling back from an all-time high.

Travere Therapeutics (TVTX) is smaller, with a market cap just above $2 billion focusing on treatments for rare kidney and metabolic diseases. It is also expected to turn an annual profit in 2026, to the tune of $1.13 per share and jumping to $3.99 in 2028. The stock broke out to an annual high last month on a volume surge and has been consolidating above the new support level.

Again, these two stocks are on the watchlist and may or may not make the final cut for the new NXT Core biotech portfolio.

Stay on the lookout for updates, or contact us to secure discounted early access before launch.

Here’s to the future,
Matt McCall
Editor, Market Insights