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|
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).
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
Pharmacyclics – Last 12 Months
Pharmacyclics – Last Five Years
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.