Crista Huff

Stock number one is: 

Celgene Corp., (SYMBOL: CELG ) and the headline says: FDA approves Celgene drug for pancreatic cancer – Boston.com

Biopharmaceutical company Celgene Corp. received FDA approval to treat late-stage pancreatic cancer, giving the company another potential $1 billion in annual sales, and diversifying the company’s product base.  “The National Cancer Institute estimates about 45,000 patients will be diagnosed and about 38,000 will die from the disease this year.”

Earnings estimates have increased again, expected to grow between 21 and 27 percent over each of the next three years.

The stock is up 38% since our first buy recommendation in March.  It’s been trading between $132 and $150 for two months, and could pretty easily break out on the upside in the near-term.  S&P just raised the target price to $172.

Our Ransom Note trendline says:  BUY CELGENE.

CELG Chart

CELG data by YCharts

Stock number two is: 

McDonald's Corp., (SYMBOL: MCD) and the headline says: International Drives Upside as U.S. Disappoints – Morgan Stanley

McDonald’s August same-store sales increased 1.9 percent, much better than analysts expected, with Europe and Russia leading the international pack.  U.S. sales remain disappointing due to menu competition and price promotions among fast-food rivals.  McDonalds is introducing new food items, including steak for breakfast, and chicken wings, in a fight to maintain market share.

Earnings growth estimates have been ratcheting downward all year, currently expected to be up 4% this year.  The dividend yield is 3.18%.

The stock price fell in August, currently trading between $94 and $99.  The large dividend yield should provide some price support for shareholders.

Our Ransom Note trendline says..... HOLD MCDONALDS.

MCD Chart

MCD data by YCharts


Crista Huff

Crista Huff is a retired stockbroker from a NYSE member investment firm. She writes about market-timing at Goodfellow LLC and is active politically.
 
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