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Buy This Top Stock on a Pullback

CBST breakout from triple-top is significant, but stochastic is slightly overbought


Cubist Pharmaceuticals (NASDAQ:CBST) — This pharmaceutical company focuses on research and development in the acute-care environment. Drugs to combat hospital-acquired infections are its priority.

This year’s earnings could be flat at $1.84, but the approval of several potential blockbuster drugs could contribute to an earnings increase. In early August, Goldman Sachs initiated coverage on the stock with a “buy” rating and a $54 price target.

Technically the breakout from a triple-top on high volume and a stochastic “buy” are noteworthy.

Since we placed CBST on our list of Top Stocks to Buy for September, it is up several points and the stochastic is slightly overbought. It would be wise to only take new positions on a pullback to $45. The target remains at $52.

Trade of the Day – Cubist Pharmaceuticals (NASDAQ:CBST)
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Trade of the Day Chart Key

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