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|
|Isis Pharmaceuticals Inc||ISIS||Biotechnology||9.9||+75.79%||$19.20|
Why We Like The Stock:
Isis Pharmaceuticals (ISIS) 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 our top-rated sub-industry, biotechnology. It’s no secret that biotech has been outperforming this year, as a quick glance at the SPDR Biotech ETF (XBI) shows just how explosive this sub-industry can be. ISIS has already gained a ton this year (+75.79%), but some of that is attributed to it being much more volatile when starting the year off at only ~$10 per share.
Despite this huge return in 2013, this stock actually has a pretty high immediate upside for a short-term trade. In early May, ISIS hit $23.03 before pulling back down to its 50-day moving average. It has since quickly rebounded and is now crossing above its short-term moving averages. A run back to $23.03 would mean a +12.56% gain, and it wouldn’t take anything out of the ordinary for this chart to move back to those levels.
We’ve liked biotech all year, and ISIS seems like a good chance to make a quick double digit gain if you pick it up at current prices.
We Would Be Buyers:
At the current price (~$20.60) or at any price above the 50-day moving average ($19.20).
Isis Pharmaceuticals, Inc., incorporated in January 10, 1989, is engaged in antisense technology, exploiting a drug discovery platform to create a pipeline of drugs. The company’s Drug Discovery and Development operations help the company to identify drugs, providing a wealth of potential targets to treat a range of 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.
Isis Pharmaceuticals – Last Three Months
Isis Pharmaceuticals – Last 12 Months
Isis 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.