Bull’s Eye Report: Regeneron Pharmaceuticals (REGN)

Buy REGN at current levels for a potential 6% jump

   

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
Regeneron Pharmaceuticals REGN Biotechnology 9.8 -4.54% $158.32

Why We Like The Stock:

Regeneron Pharmaceuticals (NASDAQ:REGN) 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. We’ve recommended the stock before, and we’re finding that today presents another attractive point to add to your position or initiate one.

A lot of biotechnology stocks act very differently, so we can work with these stocks as trades that really aren’t correlated to the market or to themselves. For example, REGN’s competitors Alexion Pharma (NASDAQ:ALXN), Vertex Pharma (NASDAQ:VRTX), BioMarin Pharma (NASDAQ:BMRN), and Pharmacyclics (NASDAQ:PCYC) all act on their own, and really don’t even resemble the SPDR Biotech ETF (NYSE:XBI). So, on its own merit, REGN is a great looking stock.

On a weekly basis, the stock has exhibited strong performance since the beginning of 2012. Notice in the charts below that the stock tends to pull back and base for a while until marching higher on a new leg up. That is what is happening currently with REGN, which makes for a great entry point. We’d be buyers at the current price around $173, and look for a test / possible breakout of recent resistance at ~$185. A close above $190 would be the goal here. With some wiggle room (stop at $158.32), REGN looks like a great intermediate- to long-term trade and is our most compelling buy today.

We Would Be Buyers:

At the current price (~$173.00).

Company Profile:

Regeneron Pharmaceuticals, Inc. is an integrated biopharmaceutical company, which discovers, invents, develops, manufactures, and commercializes medicines for the treatment of serious medical conditions. As of December 31, 2011, the company had two marketed products: EYLEA (aflibercept) Injection and ARCALYST (rilonacept) Injection for Subcutaneous Use. As of December 31, 2011, the company had 13 product candidates in clinical development. Its Trap-based, late-stage programs are EYLEA, which is being developed for the treatment of additional serious eye diseases; ZALTRAP (aflibercept), known in the scientific literature as vascular endothelial growth factor (VEGF) trap, which is being developed in oncology in collaboration with Sanofi; and ARCALYST, which is being developed for the prevention of gout flares in patients initiating uric acid-lowering treatment.

Stock Rating: 9.8

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.

Regeneron Pharmaceuticals – Last Three Months

REGN 1 1 300x168 Bull's Eye Report: Regeneron Pharmaceuticals (REGN)
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Regeneron Pharmaceuticals – Last 12 Months

REGN 1 2 300x168 Bull's Eye Report: Regeneron Pharmaceuticals (REGN)
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Regeneron Pharmaceuticals – Last Five Years

REGN1 3 300x168 Bull's Eye Report: Regeneron Pharmaceuticals (REGN)
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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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