Buy This Top Stock on a Pullback

by Sam Collins | September 6, 2012 1:29 am

Cubist Pharmaceuticals (NASDAQ:CBST[1]) — 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[2], 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.

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Source URL: http://investorplace.com/2012/09/trade-of-the-day-cubist-pharmaceuticals-nasdaq-cbst/
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