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Put This Biotech at the Top of Your Must-Buy List on a Pullback

Celgene Corp. is in a powerful bull channel with support roughly at its 50-day moving average

   

Celgene Corp. () — This company develops small molecule drugs for the treatment of blood-borne and solid-tumor cancers and inflammatory diseases. The stock has been on the Trade of the Day buy list for over a year.

On Jan. 9, with CELG just above $ 91, I noted that S&P said it had “the brightest growth prospects among large-cap biotech companies.” And on March 18, at $111.25, I pointed out that it had broken from a cup-and-handle formation with a target of $125.

S&P has raised its target several times this year, and last month boosted it to $172 from $161. Consensus earnings estimates are for $5.96 per share this year and $7.22 in 2014.

Technically the stock is in a powerful bull channel with support roughly at its 50-day moving average. But CELG can be volatile, so even though my trading target is $180, I would prefer to buy it under $140. Long-term investors could take a partial position now and add to it in the event of a pullback.

10 03413 celg 300x198 Put This Biotech at the Top of Your Must Buy List on a Pullback
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chart key 300x84 Put This Biotech at the Top of Your Must Buy List on a Pullback


Article printed from InvestorPlace Media, http://investorplace.com/2013/10/trade-of-the-day-celgene-corp-celg/.

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