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.

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

  1. CBST:
  2. Top Stocks to Buy for September:

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