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. (NASDAQ: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 has been hot this year, as evidenced in strong charts like Onyx Pharmaceuticals (NASDAQ:ONXX), Seattle Genetics (NASDAQ:SGEN), Medivation (NASDAQ:MDVN), and the SPDR Biotech ETF (NYSE:XBI). PCYC has been consolidating early 2013 gains since mid March after topping off around $95. Currently, the stock has been hovering above the $75 area and looks to be basing. This morning, PCYC crossed above its 5-day moving average. If now is the time that this biotech stock turns the corner, we would absolutely be buyers at the current price. PCYC has an extremely high short-term upside to $95 (+20.8%), and with a tight leash at $75, the downside on this trade is limited. So long as it holds the $75 level on a closing basis, we would take a shot here with PCYC.
We Would Be Buyers:
At the current price (~$78.63).
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: 9.9
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.