If you blinked over the last week and weren’t monitoring the latest stock movements, you might have missed Codexis, Inc (CDXS). While most industry analysts were commenting on the drop off in early year training, there were several movers and shakers, including Codex. With an eight percent rise on Friday, the company is starting to push in a strong performance over the last week and a half. As many stocks, it dropped off right at the end of the year as investors attempted to prepare for the 2016 tax season. Since the late 2015/early 2016 sell off period though, stocks have started to push higher rapidly, making Codexis a stock to watch.
Codexis has continued to perform well. In early morning trading on Monday, January 25, the stock quickly jumped out to a nearly eight percent increase. The value of the stock is low, sitting at just over $4.10 per share. This makes an attractive investment for you if you are not looking to invest a large amount of money or if you want to increase the number of shares you purchased. Industry experts Zacks currently has the stock as a “Strong Buy” sitting at the top rating in the analysts’ index.
The company itself specializes in chemical production, focused on pharmaceutical enzyme creations, study and manufacturing. It is a popular chemical production distributor with over 50 pharmaceutical companies using the technology produced by Codexis. The enzymes developed by the company are commonly used as screening tools. The screening tools are used by other major drug manufacturing companies including the likes of Teva, Pfizer and Merck. With many of the top drug manufacturers in the industry using technology customized and manufactured by Codexis, it makes for a strong investment. As the increase in drug production by these other companies increases, the demand for additional screening enzymes from Codexis increases as well, so demand for products manufacturers by Codexis is not likely to drop off any time soon.
Beyond the production of medications for consumer usage, Codexis also works in the biofuel industry and focuses on the development of sustainable sources. This is directed specifically at the detergent alcohol market, which consumes nearly two million tons annually. This includes shampoos, conditioners, laundry detergent and other liquid based household cleaners. A third these detergents and shampoos are comprised of petroleum. In order to move away from the product, Codexis researchers alternative opportunities to help make shampoos more eco friendly for both the environment and at home use.
Currently, Bloomberg has the company pegged at a one year return at 42 percent, although that may likely increase should the strong performance streak continue over the next several weeks. This is something you should keep an eye on, although investing now is highly recommended if you are considering it. With the market struggling, finding a stock with a strong showing over the last several trading days and a building potential is not easy. However, Codexis is proving to be the desirable return on investment most industry analysts have been looking for.
Due to the expansive portfolio covering several different industries, Codexis remains an attractive investment opportunity if you are considering moving money into the biotech industry. The company provides a growing investment potential, and with a small value per stock, it does not pose a sizable investment risk. Plus, with the recent turn around the stock has seen over the last two weeks and counting, it looks to offer a solid return on investment. Industry analysts are still marking it as a Strong Buy as it looks to rebound from the soft 2016 opening.