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Buy these top ranked ETFs on solid biotech stock earnings

Biotech stocks and the related ETFs have been the star performers this year despite some temporary glitches and rough trading in between. Encouraging industry trends, increasing merger and acquisition activities, expansion into emerging markets and ever-increasing health care spending led the sector to easily outperform the broader U.S. equity markets.
 
Though lofty valuations and regulatory concerns did bring in some pain to biotech stocks & ETFs, solid Q2 corporate earnings results from top biotech companies and strong fundamentals within this corner supported the space to make a strong comeback and emerge as winners.
 
The space has yet again come out with flying colors this earnings season with most of the biotech companies topping the Zacks Consensus Estimates on both revenues and earnings. Also, most of the top biotech names have increased their guidance for 2014 both on the top and the bottom line, suggesting bright prospects ahead.
 
The world’s largest biotech firm, Amgen (AMGN), has yet again topped the Zacks Consensus Estimate for third-quarter 2014 earnings as well as revenues. Gilead too managed to beat our estimates despite Solvaldi, their blockbuster hepatitis C treatment, missing the sales target.  Other top players in the space including Celgene (CELG), Biogen Idec (BIIB) and Alexion Pharmaceuticals (ALXN) have also easily managed to beat our estimates on both earnings and revenues.

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