Shares of this biotech were just initiated as a “Strong buy” at Raymond James. The company beat earnings estimates by three cents in its most recent quarter and analysts have raised its estimates twice in the last 30 days. Our second recommendation is a sell, based on the shares hitting a stop loss.
Buy: Celgene (CELG)
Celgene (CELG), originally recommended by Cabot Growth Investor, is one of the “growthier” stocks in the portfolio and was thus one of the more overvalued, so it’s little surprise that the stock was down 32% at the peak of selling Monday morning. What was heartening however, was how fast the stock recovered, as buyers stepped in to boost it back above its 200-day moving average. The long-term fundamentals for the company remain excellent, so I’m going to take advantage of this opportunity by upgrading CELG to buy. BUY.
Timothy Lutts, Cabot Stock of the Month, www.cabot.net, 978-745-5532, August 25, 2015