Bull’s Eye Report: Acorda Therapeutics (ACOR)

Keep a tight leash on ACOR, but don't discount it based on its earnings

   

At StateoftheMarkets.com, 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
Acorda Therapeutics Inc ACOR Biotechnology 9.7 +36.19% $33.52

Why We Like The Stock:

Acorda Therapeutics (NASDAQ:ACOR) 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) in our top rated industry, Biotechnology. Biotechnology has been on fire this year, as you can tell from the SPDR Biotech ETF’s (NYSE:XBI) 12% gain since March, and while not all biotech stocks act alike, there are certainly plenty of big gainers so far in 2013.

Following weaker than expected EPS and revs during its Q1 earnings announcement, ACOR dropped from ~$39 back down to its 50-day moving average at a pinch higher than $33.50. The good news is, the stock gracefully bottomed and based above the 50-day moving average and looks to be turning around. While a lackluster earnings announcement is usually not a good reason to pick up a stock, biotechnology stocks primarily boom and bust along with the progress of their drugs in development, and are big momentum trades for the faster money types.

We would take a shot at current prices with a buy of ACOR, mainly for its extremely high short-term upside back to its mid-April highs of $40.87. We like the calm basing pattern here, and would feel comfortable buying despite the recent downward plunge. However, we would give ACOR a very short leash, only holding while the stock remains above the 50-day moving average. Biotech is hot, and ACOR has room to run. As such, we feel it is today’s most compelling buy

We Would Be Buyers:

At the current price (~$34.30).

Company Profile:

Acorda Therapeutics, Inc. is a commercial-stage biopharmaceutical company. The company is engaged in the identification, development and commercialization of novel therapies that improve neurological function in people with multiple sclerosis (MS), spinal cord injury (SCI), and other disorders of the nervous system.

Stock Rating: 9.7

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.

Acorda Therapeutics – Last Three Months

ACOR 1 Bulls Eye Report: Acorda Therapeutics (ACOR)

Acorda Therapeutics – Last 12 Months

ACOR 2 Bulls Eye Report: Acorda Therapeutics (ACOR)

Acorda Therapeutics – Last Five Years

ACOR 3 Bulls Eye Report: Acorda Therapeutics (ACOR)

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

Note: Positions may be bought or sold while this publication is in circulation without notice.


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