|SoTM Bull's Eye Report - Today's Most Compelling Buy |
Tuesday, May 7, 2013
At StateoftheMarkets.com, we strive to "own the best and ignore the rest" in our equity portfolios. Toward this end, each day we search our database for a "top stock" (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical "set up" and a good entry point.
In short, when our equity team is looking to add a stock to one of our portfolios, the "bull's eye" stock shown below is generally their first choice.
| Pharmacyclics, Inc. ||PCYC || Biotechnology || 9.9 || +24.50% || $72.73 |
Why We Like The Stock:
Pharmacyclics Inc (PCYC) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) with a positive technical set-up. Biotechnology has been hot this year, as evidenced in strong charts like Onyx Pharmaceuticals (ONXX), Seattle Genetics (SGEN), Medivation (MDVN), and the SDPR Biotech ETF (XBI). PCYC has been consolidating early 2013 gains since mid March after topping off around $95. Currently, the stock has been hovering above the $75 area and looks to be basing. This morning, PCYC crossed above its 5-day moving average. If now is the time that this Biotech stock turns the corner, we would absolutely be buyers at the current price. PCYC has an extremely high short-term upside to $95 (+20.8%), and with a tight leash at $75, the downside on this trade is limited. So long as it holds the $75 level on a closing basis, we would take a shot here with PCYC.
|We Would Be Buyers: |
At the current price (~$78.63).
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|Company Profile: |
Covance Inc. is a drug development services company providing a range of early-stage and late-stage product development services on a worldwide basis primarily to the pharmaceutical, biotechnology and medical device industries. The Company also provides laboratory testing services to the chemical, agrochemical and food industries. The services it provides constitutes two segments: early development services, which includes discovery support services, preclinical services and clinical pharmacology services, and late-stage development services, which includes central laboratory, Phase II-IV clinical development, and market access services. In 2011, Covance acquired certain assets of TRAC Microbiology, Inc., a food microbiology and chemistry laboratory.
The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 - 10 with 10 being the highest.
At the time of publication the editor and affiliated companies own the following positions: None
Note: Positions may be bought or sold while this publication is in circulation without notice.
Pharmacyclics Inc - Last 3 Months
Pharmacyclics Inc - Last 12 Months
Pharmacyclics Inc - Last 5 Years
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