| Stock (Symbol) | Stock Price | |
Alexion Pharmaceuticals (ALXN) |
$193 |
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| Data is as of | Expected to Report | Sector |
October 31, 2014 |
Jan 28 – Feb 2 |
Healthcare |
| Sharek’s Take | ||
 Yesterday, Alexion Pharmaceuticals broke out to $200 on solid volume, as it looks to me to be the start of the Healthcare Stock Rush of 2015. The last couple of years Internet stocks were the best stocks I could find. Now a lot of these large tech stocks are anticipating merely teens profit growth in 2015. There are drug stocks like Alexion putting out much better growth, and I think money is flowing this way as you read this. The high-volume breakout is proof. ALXN works in the field of orphan drugs, which are few-and-far between but are expensive. It has one blockbuster Soliris and another, asfotase.alfa, is trying to get approved in different countries. Plus ALXN has three more drugs in the pipeline. The thing I don’t like is the 2015 Fair Value is $223, which isn’t much upside. But 2016’s Fair Value is $280 and that’s 40% upside in two years. |
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| One-Year Chart | ||
 What a nice breakout. These charts were done 10/31 when ALXN was $193. This chart shows a breakout at $190 and yesterday 12/2 there was another. ALXN has the power to keep going with its +53% profit growth the last two qtrs. |
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| Earnings Table | ||
 Sales grew 31% LastQtr and 32% the qtr earlier. Profits jumped 53% for the second straight qtr.ALXN beat the street by a solid 11 cents, better than the 6 cents the qtr prior. Annual Profit Estimates continue to trend higher. That and 50% profit growth is why the stock is hot. Quarterly profit shows slow growth 2QtrsOut due to tough comparisons. That;s fine. Results 3QtrsAgo were helped by a one-time payment from France. |
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| Fair Value | ||
 Last qtr wit hthe stock at $159 I said “ALXN does have good upside potential — for both 2014 & 2015. This is a solid selection for growth investors.” This qtr with the stock at $200 upside isn’t as great. Still, my 2016 Fair Value is $280. |
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| Ten-Year Chart | ||
 Here’s the ten-year view showing the stock breaking out and running for high ground. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
12 of 22 |
Alexion Pharmaceuticals is clicking on all cylinders. At this point maybe the P/E is going from 33 to 45, which would explain the breakout. If that doesn’t happen there doesn’t seem to be much upside to me in the short-term, but I see ALxN going from $200 to $280 by 2016. ALXN is ranked 12th of 22 stocks in the Growth Portfolio Power Rankings. I sold it from the Aggressive Growth Portfolio last quarter and to put the money in Chinese Internet stocks, I’m not going to buy it back this high. |
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Aggressive Growth Portfolio
N/A |
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