Top Stock to Buy #2 – Actavis (ACT)
Actavis (NYSE:ACT), a producer of generic and branded drugs, is the result of an acquisition of the Actavis Group by Watson Pharmaceuticals, which adopted its name. The combined company beat analysts’ earnings estimates for Q4 by 4%. This year, a full integration of the two companies is expected to bring in earnings of $7.70 to $8.10 per share.
The stock has been consolidating in a bullish rectangle since November, which followed a six-month bull channel that resulted in a gain of almost 30%. In late March, ACT popped above the rectangle’s resistance at $90 on a steady increase in volume. Buy ACT for a trade to $100.