Rolls-Royce has been held up as something of a poster child when it comes to growth stocks over the past couple of years. It’s true, the company has done very well, with the stock up an impressive 41% over the past year. <\/p>\n
However, it’s taking the limelight away from some other strong performers. Here’s one that deserves more recognition. <\/p>\n
Tapping into a growing market <\/p>\n
I’m talking about RTW Biotech Opportunities (LSE:RTW). Over the past year, the stock’s up 82%. <\/p>\n
As the name suggests, the company tries to exploit opportunities in the biotech space. More specifically, the management team searches for companies developing potentially disruptive treatments and technologies, investing across both public and private markets. <\/p>\n
That means shareholders can get exposure to businesses long before they become household names, although this naturally comes with considerably more risk. <\/p>\n
One reason the shares have performed so strongly is the broader biotech recovery. After several difficult years, improving investor sentiment and renewed takeover activity have breathed life back into the sector. Big Pharma is particularly keen to acquire promising drug pipelines as it attempts to replace billions of dollars of revenue that could disappear as medicines lose patent protection. <\/p>\n
RTW has been particularly well positioned for this. For example, in June, portfolio company Apogee Therapeutics agreed to be acquired by AbbVie for $10.9bn. <\/p>\n
By the end of June, the overall group net asset value (NAV) had reached 286p per share, representing a 175% gain since admission. Yet the stock trades at 242p. Given that the share price should mirror the NAV fairly closely, the pull higher has helped here, although the stock’s still at a discount. <\/p>\n
A positive outlook <\/p>\n
For a start, the share price should still catch up to the NAV, providing some further potential appreciation here. If the underlying portfolio continues performing, then again the share price should look to follow suit. <\/p>\n
The sector backdrop looks encouraging too. Healthcare stocks face a huge patent cliff towards the end of the decade, increasing the incentive to acquire innovative biotech businesses. RTW’s focus on companies developing differentiated medicines could put it directly in the firing line of that M&A spending. <\/p>\n
If it can command strong valuations when it comes to selling stakes owned in these portfolio companies, there could be some good windfalls ahead. <\/p>\n
There are risks, of course. Clinical trial failures can wipe huge amounts from biotech valuations overnight. Another factor is the private holdings. These can be difficult to value, and hard to sell quickly if needs be. <\/p>\n
Even with these factors, I believe the stock still has plenty of room to grow in the coming year. In fact, if I had to choose between buying Rolls-Royce and RTW, I’d pick the latter. Investors who agree with my thoughts could consider it for their own portfolios. <\/p>\n
Should you invest \u00a35,000 in RTW Biotech Opportunities Ltd. right now? <\/p>\n
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. <\/p>\n
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if RTW Biotech Opportunities Ltd. made the list? <\/p>\n
\u00a0See The Six Stocks <\/p>\n
Jon Smith does not hold any positions in the companies mentioned <\/p>\n
The post This growth stock has delivered 2x the return of Rolls-Royce shares in the past year<\/a> appeared first on The Twelfth Magpie<\/a>. <\/p>\n More reading <\/p>\n The Twelfth Magpie 2026 <\/p>\n","protected":false},"excerpt":{"rendered":"Rolls-Royce has been held up as something of a poster child when it comes to growth stocks over…\n","protected":false},"author":2,"featured_media":95692,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[20731],"tags":[35007,22842,1238,42576],"class_list":["post-101210","post","type-post","status-publish","format-standard","has-post-thumbnail","category-rolls-royce","tag-portfolio-company","tag-private-markets","tag-rolls-royce","tag-rtw-biotech-opportunities"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@UnitedKingdom\/117076163680490952","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/101210","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/comments?post=101210"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/101210\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/95692"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=101210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=101210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=101210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}