Regeneron Pharmaceuticals Inc (REGN): Today's Most Compelling Buy

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SoTM Bull's Eye Report - Today's Most Compelling Buy
Thursday, March 14, 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.



Company


Symbol


Industry

Stock
Rating

YTD
% Gain
S.T.
Stop
Loss
Regeneron Pharmaceuticals Inc REGN Biotechnology 9.8 -4.54% $158.32

Why We Like The Stock:

Regeneron Pharmaceuticals Inc (REGN) 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. A lot of Biotechnology stocks act very differently, so we can work with these stocks as trades that really aren't correlated to the market or to themselves. For example, REGN's competitors Alexion Pharma (ALXN), Vertex Pharma (VRTX), Biomarin Pharma (BMRN), and Pharmacyclics Inc (PCYC) all act on their own, and really don't even resemble the SPDR Biotech ETF (XBI). So, on it's own merit, REGN is a great looking stock. On a weekly basis, the stock has exhibited strong performance since the beginning of 2012. Notice that the stock tends to pullback and base for a while until marching higher on a new leg up. That is what is happening currently with REGN, which makes for a great entry point. We'd be buyers at the current price around $173, and look for a test / possible breakout of recent resistance at ~$185. A close above $190 would be the goal here. With some wiggle room (stop at $158.32), REGN looks like a great intermediate- to long-term trade and is our most compelling buy today.
We Would Be Buyers:

At the current price (~$173.00).

Looking to trade the Bull's Eye stock picks? Click here to download our free Special Report, "How We Identify Our “Bull’s Eye” Picks & How You Can Profit Trading Them"
Company Profile:

Regeneron Pharmaceuticals, Inc. (Regeneron) is an integrated biopharmaceutical company, which discovers, invents, develops, manufactures, and commercializes medicines for the treatment of serious medical conditions. As of December 31, 2011, the Company had two marketed products: EYLEA (aflibercept) Injection and ARCALYST (rilonacept) Injection for Subcutaneous Use. As of December 31, 2011, the Company had 13 product candidates in clinical development. Its Trap-based, late-stage programs are EYLEA, which is being developed for the treatment of additional serious eye diseases; ZALTRAP (aflibercept), known in the scientific literature as vascular endothelial growth factor (VEGF) trap, which is being developed in oncology in collaboration with Sanofi; and ARCALYST, which is being developed for the prevention of gout flares in patients initiating uric acid-lowering treatment.

Stock Rating:

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.

Disclosure:

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.

  Regeneron Pharmaceuticals Inc - Last 3 Months

  Regeneron Pharmaceuticals Inc - Last 12 Months

  Regeneron Pharmaceuticals Inc - Last 5 Years

 

 

The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.

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The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

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This article appears in: News Headlines , US Markets , Investing Ideas , Taxes

Referenced Stocks: ALXN , BMRN , PCYC , REGN , VRTX , XBI

David Moenning


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