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.
|United Therapeutics Corp.||UTHR||Biotechnology||9.8||+11.95%||$59.02|
Why We Like The Stock:
United Therapeutics Corp. (NASDAQ:UTHR) 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) in the top rated industry, biotechnology. Biotech stocks have been absolutely on fire this month, and the sub-industry is rated the highest in our momentum rankings. While the Health Care SPDR ETF (NYSE:XLV) is outperforming, it only takes a quick glance at the SPDR Biotechnology ETF (NYSE:XBI) to see where the upward thrust is coming from. UTHR has been having a great year so far, and has been trending higher since late October 2012. The last time the stock closed below its 50-day moving average was in early December, which is a great sign. In early April and again last week, UTHR held support around $59.50, and looks like it has turned a corner. Currently, the stock is crossing above its short-term moving averages and looks poised for a run back up to recent mid-March highs just north of $63. We like this reasonably priced biotech company here as long as it holds above its April 5 low of $59.02.
We Would Be Buyers:
At the current price (~$61.00), or on a pullback to the 50-day moving average ($59.69).
United Therapeutics Corporation is a biotechnology company focused on the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening conditions. The company’s therapeutic products and product candidates include Prostacyclin Analogues, Phosphodiesterase Type 5 (PDE-5) Inhibitor, Monoclonal Antibodies (MAbs), Glycobiology Antiviral Agents and Cell-Based Therapy. Its product portfolio includes Remodulin, Tyvaso, Adcirca, Oral Treprostinil (UT-15C), Oral Treprostinil (UT-15C) Combination Therapy, Ch14.18 MAb, Beraprost-MR, 8H9 MAb, IW001, Glycobiology Antiviral Agents, PLX Cells, and Pulmonary Tissue Replacement and Remodeling. On July 11, 2011, the company acquired 100% interest in Revivicor, Inc. (Revivicor). On March 31, 2011, the Company sold 100% interest in Medicomp, Inc. (Medicomp). In June 2011, it discontinued its telemedicine-related activities.
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.
United Therapeutics Group – Last Three Months
United Therapeutics Group – Last 12 Months
United Therapeutics Group – Last Five Years
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At the time of publication the editor and affiliated companies own the following positions: UTHR
Note: Positions may be bought or sold while this publication is in circulation without notice.