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.