Bull’s Eye Report: Regeneron Pharmaceuticals (REGN)

This parabolic biotech succcess still has some upside left

   

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 Inc REGN Biotechnology 9.9 -3.71% $169.75

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. REGN had an incredible run in 2012, gaining 208.65% on the year. While this would indicate something of a parabolic run, the short-term prospects for a trade still look pretty good. The Biotechnology sub-industry has recently pulled back, though still exhibits a positive technical set-up, as you can see in nice charts like Alexion Pharmaceuticals (NASDAQ:ALXN), Onyx Pharmaceuticals (NASDAQ:ONXX), or even more clearly in the SPDR Biotech ETF (NYSE:XBI). REGN has been steadily trending upward, with intermittent pullbacks scattered throughout. Currently, the stock has pulled back to the $175 area, which makes for an excellent entry point for a run back up to the all-time highs at $185-$187 range. At roughly a +6.85% upside before any resistance is reached, this extended Biotechnology company looks like a great short-term trade.

We Would Be Buyers:

At the current price (~$175), or on a pullback to $170.

Company Profile:

Regeneron Pharmaceuticals 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: 9.9

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.

 Regeneron Pharmaceuticals – Last Three Months

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 Regeneron Pharmaceuticals – Last 12 Months

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 Regeneron Pharmaceuticals – 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.

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