Today’s new recommendation comes from Cabot Market Letter.
“We added Celgene Corp. (CELG, $99) to the Model Portfolio last week, and we think it could be an eBay-type of steady performer in the months ahead.
“The company’s various cancer treatments (including Revlimid, its current big seller) have driven consistent growth for many years, and thanks to some upcoming new product launches, management is talking very bullishly — they’re targeting $8 to $9 per share of earnings in 2015 (up from $4.90 last year) and $13 to $14 per share in 2017! Of course, you have to take such long-term forecasts with a grain of salt, but considering the firm’s outstanding track record, we have little reason to doubt them. An accelerated $600 million share buyback was also announced this week. CELG leapt to all-time highs in January on monster volume and has now traded tightly for a month. It looks like a good buy here.”
- Michael Cintolo, Cabot Market Letter, February 20, 2013