Buy This Top Stock on a Pullback

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

Buy This Top Stock on a Pullback

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.

09 06 12 cbst 300x206 Buy This Top Stock on a Pullback
Click to Enlarge

chart key 300x84 Buy This Top Stock on a Pullback

Endnotes:
  1. CBST: http://studio-5.financialcontent.com/investplace/quote?Symbol=CBST
  2. Top Stocks to Buy for September: http://investorplace.com/2012/08/top-stocks-to-buy-aem-cbst-esrx-hiw-nee-pfe/

Source URL: http://investorplace.com/2012/09/trade-of-the-day-cubist-pharmaceuticals-nasdaq-cbst/
Short URL: http://invstplc.com/1ful9tE