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Management has many accounting choices when deciding how to report their company’s performance, and this can allow deviation from economic reality. To gauge how “real” the reported stats are, analysts look at these choices.

Forensic accounting firm Audit Integrity is a firm that analyzes and rates companies based on these choices. Their Accounting and Governance Risk (AGR) score is from 1-100, with 100 being the most conservative and reliable.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We screened today’s rallying biotech stocks, those trading above their 20-day, 50-day, and 200-day moving averages. From that universe, we searched for those with high AGR scores (above 70).

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these biotech stocks have further to climb? Use this list as a starting-off point for your own analysis.

List sorted by AGR score.

1. Acorda Therapeutics, Inc. (ACOR): Biotechnology Industry. Market cap of $1.28B. The stock is currently trading 3.20% above its 20-day moving average, 10.32% above its 50-day MA, and 21.26% above its 200-day MA. According to Audit Integrity, the company has Conservative accounting and governance risk, with an AGR score of 97. The stock is a short squeeze candidate, with a short float at 13.19% (equivalent to 5.25 days of average volume). The stock has gained 4.21% over the last year.

2. Incyte Corporation (INCY): Biotechnology Industry. Market cap of $2.38B. The stock is currently trading 7.22% above its 20-day moving average, 4.31% above its 50-day MA, and 18.11% above its 200-day MA. According to Audit Integrity, the company has Conservative accounting and governance risk, with an AGR score of 94. This is a risky stock that is significantly more volatile than the overall market (beta = 2.35). The stock is a short squeeze candidate, with a short float at 11.84% (equivalent to 8.19 days of average volume). The stock has gained 72.54% over the last year.

3. Chelsea Therapeutics International Ltd. (CHTP): Biotechnology Industry. Market cap of $329.04M. The stock is currently trading 10.37% above its 20-day moving average, 14.65% above its 50-day MA, and 5.42% above its 200-day MA. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 79. The stock is a short squeeze candidate, with a short float at 8.56% (equivalent to 6.91 days of average volume). The stock has had a good month, gaining 16.92%.

4. Regeneron Pharmaceuticals, Inc. (REGN): Biotechnology Industry. Market cap of $5.06B. The stock is currently trading 1.25% above its 20-day moving average, 2.51% above its 50-day MA, and 45.51% above its 200-day MA. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 79. The stock has had a couple of great days, gaining 5.32% over the last week.

5. Spectrum Pharmaceuticals, Inc. (SPPI): Biotechnology Industry. Market cap of $474.08M. The stock is currently trading 6.11% above its 20-day moving average, 6.0% above its 50-day MA, and 37.74% above its 200-day MA. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 78. The stock has had a couple of great days, gaining 9.5% over the last week.

6. Jazz Pharmaceuticals, Inc. (JAZZ): Biotechnology Industry. Market cap of $1.33B. The stock is currently trading 12.59% above its 20-day moving average, 11.39% above its 50-day MA, and 47.17% above its 200-day MA. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 72. This is a risky stock that is significantly more volatile than the overall market (beta = 2.4). The stock has had a good month, gaining 11.68%.

7. Neurocrine Biosciences Inc. (NBIX): Biotechnology Industry. Market cap of $434.98M. The stock is currently trading 6.52% above its 20-day moving average, 6.69% above its 50-day MA, and 8.23% above its 200-day MA. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 71. The stock has had a couple of great days, gaining 9.14% over the last week.

*AGR score sourced from Audit Integrity, all other data sourced from Finviz.

Source: 7 Rallying Biotech Stocks With Conservative Accounting Practices