by Sam Collins | October 23, 2012 1:50 am
Celgene Corp. (NASDAQ:CELG) — This is considered by S&P to have the “brightest growth prospects among large-cap biotech companies.” Its impressive performance was led by its cancer products Revlimid and Vidaza, but the company also has a number of other products in the pipeline awaiting FDA approval.
Earnings were $2.85 in 2011 and are estimated to be $4.46 in 2012. An average of 28 analysts’ estimates for earnings in 2013 is $5.53, and their mean target for the stock is $81.35.
Technically, CELG ran in a bull channel from under $62 to over $80 before profit-taking at its April high took a toll. But the long-term chart (not provided) shows that CELG is in a powerful bull trend, thus the stock should be bought on a pullback. Buy CELG between $74 and the 200-day moving average at $72.24 for a trade to $81.
Long-term investors looking for a high-quality biotech stock will want to hold CELG as a cornerstone of their portfolio since much higher prices are probable.
Source URL: https://investorplace.com/2012/10/trade-of-the-day-celgene-corp-nasdaq-celg-3/
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