Bull’s Eye Report: Illumina (ILMN)

by Dave Moenning | September 23, 2013 12:58 pm

At StateoftheMarkets.com[1], we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.

In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.

Company	Symbol	Industry	Stock Rating	YTD% Gain	S.T. Stop Loss
Illumina	ILMN	Life Sciences Tools & Services	9.5	+45.60%	$76.28

Why We Like The Stock:

Illumina (ILMN[2]) is our most compelling buy today due to the fact that it is a top-rated stock (in terms of earnings strength and company/industry performance) with a strong technical set-up. While other life sciences stocks like PerkinElmer (PKI[3]) and Life Technologies (LIFE[4]) have had a good 2013 so far, ILMN has been stellar. The stock has been trending higher with little pause since June of 2012, doubling in price since then. ILMN has been making higher highs and higher lows since early February, rarely pulling back to consolidate gains. The stock recently hit highs of around $85 before pulling back to current prices around $80.60. ILMN has good support at $80, and looks great on an intermediate- and short-term basis. We would be buyers here while the stock is healthy and hovering above its 50-day moving average. While we wouldn’t give it too long a leash, we would hold above $76.28 for a run to new all-time highs.

We Would Be Buyers:

At the current price (~$80.50), or on a pullback to the 50-day moving average ($79.08).

Company Profile:

Illumina is a developer and manufacturer of life science tools and integrated systems for the analysis of genetic variation and function. Illumina provides a line of genetic analysis solutions, with products and services that serve a range of interconnected markets, including sequencing, genotyping, gene expression, and molecular diagnostics. The company is organized in two business segments: life sciences and diagnostics. Its life sciences business unit includes all products and services related to the research market, namely the product lines based on its sequencing, BeadArray, VeraCode, and real-time PCR technologies. Its diagnostics business unit focuses on molecular diagnostics. Its customers include genomic research centers, academic institutions, government laboratories, and clinical research organizations. In February 2013, it completed the acquisition of Verinata Health, Inc. Effective July 23, 2013, Illumina Inc acquired Advanced Liquid Logic Inc.

Stock Rating: 9.5

The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.

Illumina – Last Three Months

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Illumina – Last 12 Months

[6]Illumina – Last Five Years

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Looking to trade the Bull’s Eye stock picks? Click here to download our free Special Report, “How We Identify Our “Bull’s Eye” Picks & How You Can Profit Trading Them”[8]

At the time of publication the editor and affiliated companies own the following positions: None

Source URL: https://investorplace.com/2013/09/bulls-eye-report-illumina-ilmn/

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