Is the SPDR S&P Biotech ETF (XBI) a ‘Strong Buy’ Right Now?

The SPDR S&P Biotech ETF XBI +2.02% ▲ is drawing fresh investor attention as analysts maintain a bullish outlook on some of its underlying holdings. The fund, which tracks an equal-weighted index of etfs">U.S. biotechnology companies, delivered a 1-year return of 38.98%, significantly outperforming its Health category peers, which averaged 19.44% over the same period.

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TipRanks’ ETF analysis tool provides a view of XBI’s performance trends, analyst ratings, and fund flows, offering a basis for evaluating whether it currently merits a strong buy rating.

XBI Tops Strong Buy Ratings

TipRanks analysts’ consensus rating indicates that the SPDR S&P Biotech ETF is currently a “Strong Buy.” Analysts have set an average 12-month price target of $195.10, suggesting a potential upside of 53.66%. XBI has also risen about 67.5% from its April 2025 low of $77 to its current price of $129.28, highlighting the ETF’s strong rebound alongside the broader biotech sector.

Within XBI’s portfolio, analysts highlight several high-upside opportunities, including Gossamer Bio GOSS -5.72% ▼ , projected to rise by 2,490.67%; Invivyd IVVD +4.66% ▲ , with an estimated gain of 517.28%; and RegenXBio RGNX +2.14% ▲ , with an upside potential of 291.08%. At the same time, a few holdings, including Moderna MRNA +2.74% ▲ and Erasca, Inc. ERAS +3.76% ▲ , show moderate downside projections of roughly 28.46% and 18.20%, respectively. Overall, XBI combines strong upside potential with the typical selective risks of a diversified biotech portfolio.

XBI Holds Uptrend Despite Mixed Sentiment

Technically, XBI remains in an upward trend. Its 20-day and 200-day moving averages are positive, with 12-month momentum at 37.48%, while the MACD indicator signals a ‘Buy.’ These signals point to continued near-term strength.

However, sentiment indicators are more mixed. XBI’s Hedge fund positioning has declined, and crowd wisdom is rated “Very Negative,” marking a divergence from analysts’ bullish outlook.

Is XBI a Good Investment?

Based on TipRanks analyst ratings, performance trends, and technical indicators, XBI presents an opportunity for investors seeking biotech exposure. With $8.35 billion in assets under management and an equal-weighted structure across 146 holdings, the ETF provides broad diversification alongside significant upside potential. While selective downside risks remain, its bullish momentum and strong buy consensus reinforce its investment appeal.

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