Top Stock to Buy #1 – Celgene (CELG)
Celgene (CELG) 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, at 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, recently boosting it to $188 from $172. Earnings per share are estimated to be $5.36 this year and $6.54 in 2014.
Technically, the stock is in a powerful bull channel with support roughly at its 50-day moving average. Early in November, it briefly dipped to its bullish support line, where it triggered a buy signal from my proprietary internal indicator, the Collins-Bollinger Reversal (CBR).
CELG can be volatile, and so even though my trading target is $180, I would prefer to buy it under $155. Aggressive traders could buy now with a trailing stop-loss order. Long-term investors can take a partial position now and add to it in the event of a pullback.