PCYC - Hot biotech stock, uptrend broken, watch for reversal

18 de dez. de 2013

Strong uptrend in PCYC recently broken and beaten down to well below the average analyst price target of $146. Pharmacyclics is a clinical stage biotech stock that recently got approval of its drug Ibrutinib, a cancer treatment drug. Their drug has had very successful results and are setup to have a very strong first quarter earnings next year. Despite the sky-high P/E ratio, good earnings should eventually push this stock at least back to around its trend of about $132.98 and great earnings could push it even closer to the analyst estimate of $146. I would buy after stock moves back to and shows good support at the 101.37 area and set stop at around the $96.88 area.