I was out at the Money Show in Las Vegas last week doing a couple of investment presentations to try to help investors navigate this very challenging market. Judging from the overflowing room for the presentation I did on biotech, interest in this space has not waned a bit, and a lot of folks are slowly adding new money to the sector. It confirmed I am not alone in my belief that sentiment will eventually return to a positive stance even as the sector continues to be locked in its deepest and longest bear market since the end of the financial crisis. I remain convinced the current entry points will look quite stellar one or two years out.

So why do I continue to remain optimistic on the long-term value of the sector?

Growth:

This was the fourth quarter in a row that profits within the S&P 500 declined year-over-year, and it was the fifth quarter in a row that revenues dropped from the same period a year ago. Seven of the ten industry sectors within the S&P showed profit and sales declines this quarter as domestic GDP growth clocked in at .5% and global demand remains at depressed 2009 levels. In short, we are currently locked into a “profit recession” for the first time since the end of the financial crisis

In contrast, biotech companies within the S&P 500 reported a 12% rise in revenues in the first quarter with commensurate gains in earnings. Despite all the political posturing on drug price “gouging” and the debacle of Valeant Pharmaceuticals (NYSE: VRX), profit and sales growth remains strong within the sector. For all of 2015, spending on drugs domestically grew at a 12.2% clip to some $425 billion – an all-time record.

Valuation:

Despite being one of the few growth engines in the market, the collective valuation of the biotech companies within the S&P 500 is at its lowest level in some five years. Bargains abound among some of the large cap names in this sector. Take AbbVie (NYSE: ABBV), the drugmaker primarily known for its blockbuster biologic Humira. Earnings should increase 15% to 20% both in FY2016 and FY2017. The stock also pays a 3.6% dividend yield, twice that of a 10-year treasury right now. Despite this, the stock goes for 13 times this year’s profits.