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Bull’s Eye Report:Isis Pharmaceuticals (ISIS)

ISIS has risen a lot--but it's not out of steam yet


At, 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).

Company Profile:

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 3 month performance

Isis Pharmaceuticals – Last 12 Months

ISIS 12 month performance

Isis Pharmaceuticals – Last Five Years

ISIS 5 year performance

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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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