Celgene Corp. (NASDAQ:CELG) – This company is considered by S&P to have “the brightest growth prospects among large-cap biotech companies.” Its impressive performance was led by its cancer products Revlimid and Vidaza. The company also has a number of other products in the pipeline awaiting FDA approval and is considered by many analysts to be a leader in cancer treatments.
Earnings for 2011 met adjusted estimates of $2.85, and S&P estimates earnings of $4.44 in 2012 and $5.11 in 2013. Gross margins are expected to maintain 93%. Street analysts predict a price target of $93 within 12 months.
The Trade of the Day has followed CELG since July, and recently recommended it on Feb. 3 at $74.16.
Technically CELG broke from a compound top on Sept. 20 on heavy volume, then again from a double-top at $69, and again yesterday at $74.50 in spite of a very negative day for the stock market.
These breaks are called “step-up patterns” and mostly occur on stocks in an aggressive bull market. A bullish signal from our internal indicator, the Collins-Bollinger Reversal (CBR) occurred on Jan. 27, and a new stochastic buy was flashed on Feb. 13.
The trading target for CELG is $80 within 30 days and $100-plus longer term.