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|
|Alere Inc||ALR||Health Care Supplies||9.1||+40.34%||$25.41|
Why We Like The Stock:
Alere Inc. (NYSE:ALR) 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 a top rated sector, healthcare. While biotech and healthcare facilities stocks have been getting more of the attention lately, healthcare suppliers have been having a sneaky good year so far. Cooper Cos. (NYSE:COO), Align Technology (NASDAQ:ALGN), West Pharma Services (NYSE:WST), and Alere have all been straight up in 2013.
Since crossing above its 50-day moving average back in early January, ALR has been operating well above it while maintaining a stellar intermediate-term uptrend. We like ALR because of the strength of this uptrend, the fact that it is nowhere near extended on a weekly basis, and also that it just broke through critical weekly resistance at $26.00 (see its struggles in Q1-Q2 of 2012 on the chart below). As long as it can maintain its price above the 50-day moving average, we like ALR to continue its march higher and would be buyers at current prices.
We Would Be Buyers:
At the current price (~$26.75).
Alere Inc. is engaged in developing capabilities in near-patient diagnosis, monitoring and health management. The Company’s products and services, as well as its new product development efforts, focuses on cardiology, infectious disease, toxicology, diabetes, oncology and women’s health. The Company operates in three segments: professional diagnostics, health management and consumer diagnostics.
Stock Rating: 9.1
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.
Alere – Last Three Months
Alere – Last 12 Months
Alere – Last Five Years
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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.