Bull’s Eye Report: Pharmacyclics (PCYC)

Try PCYC for some biotech upside this month

   

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
Pharmacyclics Inc PCYC Biotechnology 9.3 +52.75% $82.56

Why We Like The Stock:

Pharmacyclics Inc (PCYC) 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) with a positive technical set-up. Biotechnology stocks haven’t had a great month in June, as evidenced by the chart of the SPDR S&P Biotech ETF (XBI). However, biotech is still one of our top-rated sub-industries, and has a lot of good trading opportunities if you look closely. Pharmacyclics has been on our radar for some time. Twice this year it has flirted near $95, most recently on June 3 (highs of $93.76). Despite a series of sizable pullbacks, the stock is firmly entrenched in a long- and intermediate-term uptrend, and is already up over 50% on the year. Though PCYC is volatile, it has been making higher highs and higher lows since mid-April. At current prices, PCYC presents a good entry point and looks poised to make a run back to the $95 area. We wouldn’t hold the stock if it crosses back below the 50-day moving average at $82.56, but we’d be willing to take a shot here.

We Would Be Buyers:

At the current price (~$86.75).

Company Profile:

Pharmacyclics, Inc. is a clinical-stage biopharmaceutical company focused on developing and commercializing small-molecule drugs for the treatment of cancer and immune mediated diseases. The company’s clinical development and product candidates are small-molecule enzyme inhibitors designed to target biochemical pathways involved in human diseases.

Stock Rating: 9.3

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.

Pharmacyclics – Last Three Months

PCYC 1 Bull's Eye Report: Pharmacyclics (PCYC)

Pharmacyclics – Last 12 Months

PCYC 2 Bull's Eye Report: Pharmacyclics (PCYC)

Pharmacyclics – Last Five Years

PCYC 3 Bull's Eye Report: Pharmacyclics (PCYC)
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