This Biotech Holds Up In Buy Zone Despite Falling Market

2026-03-27 18:31:51

While major stock indexes tumbled sharply this week, United Therapeutics (UTHR) is holding up in a buy zone and trading tightly. Shares remain actionable, making United Therapeutics this week’s Big Cap 20 stock to watch.

After consolidating throughout January and February, the stock finally broke out from a flat base on Feb. 25. Shares shot past a 519.99 entry after strong earnings propelled the stock up more than 13%.

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Initially, shares pulled back and undercut the buy point, triggering the 7% sell rule. United even traded below its 50-day line for a session before retaking that level and the buy point a day later. This was certainly a bullish sign, and shares have been trading in the buy zone since then.

The stock’s relative strength line has trended sharply higher in recent weeks. Additionally, the stock’s Relative Strength Rating of 92 reflects strength as well. The RS Rating gauges a stock’s strength compared with other listed companies. A rating of 92 indicates that over the past 12 months a stock outperformed 92% of the companies in IBD’s database.

The stock’s Composite Rating is at 97, while institutional support also remains robust. The stock is holding an Accumulation/Distribution Rating of A-.

This recent flat base, a stage-two base with 12% depth, occurred after a 24% run from the prior consolidation breakout that occurred last September. That stage-one base was formed over the course of 42 weeks from November 2024 through September 2025.

United Therapeutics: Uptick In Earnings Growth

United Therapeutics develops treatments for rare diseases. Its cornerstone drug, Tyvaso, treats two forms of high blood pressure in the lungs: pulmonary arterial hypertension and pulmonary hypertension with interstitial lung disease.

The company’s profit growth accelerated for a third straight time in its fourth quarter. Earnings were $7.70 per share, up 24% on sales of $790.2 million, which grew 7%.

There has been a slight deceleration in year-over-year sales growth. But that makes the earnings growth even more of a highlight.

Total Tyvaso revenue grew 12% to $464.3 million in the fourth quarter of 2025. That compares with $415.9 million in the fourth quarter of 2024.

Martine Rothblatt, United Therapeutics chief executive, also touted promising results from recent clinical programs that could add significant growth to the company.

In the firm’s recent earnings statement, Rothblatt said, “Looking ahead, our Advance Outcomes and Teton-1 clinical programs are on the cusp of unveiling pivotal data that could unlock significant new treatment options for patients, launching a period of transformational growth for UT.”

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