Biotech leader ImmunoGen, Monday's pick for IBD 50 Growth Stocks To Watch, is approaching an early buy trigger, with the company expected to turn profitable this year. That makes ImmunoGen stock one of the best stocks to buy and watch in today's market.
ImmunoGen is a leader in the field of antibody-drug conjugates (ADCs) for the treatment of cancer.
On Nov. 2, ImmunoGen reported better-than-expected earnings and sales. The company earned 10 cents a share on sales of $113.4 million. In the year-ago period, ImmunoGen lost 31 cents a share. Sales surged 638% year over year.
"With a 36% increase in sequential quarterly net sales and over $210 million in product revenue through the first nine months of the year, ELAHERE is tracking towards one of the most successful first product launches in oncology in a decade," CEO Mark Enyedy said in the news release.
Elahere is a treatment for patients with a specific form of ovarian cancer. It targets a receptor called folate receptor alpha.
Analysts project the company will turn profitable this year, earning seven cents per share, with growth of 414% seen in 2024, according to FactSet.
Because the company remains unprofitable, ImmunoGen stock has a weak Earnings Per Share Rating of 76 out of a best-possible 99, according to IBD Stock Checkup. This rating takes into account earnings growth and profit stability over the past three years. The two most recent quarters are weighted more heavily.
IMGN stock has an 89 out of a best-possible 99 IBD Composite Rating after a tremendous stock price move since March. That makes it a stock to buy or watch.
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ImmunoGen Nears Early Buy Point
ImmunoGen stock is forming a base that spans back to mid-July. The official buy point is 20.69, according to IBD MarketSmith chart analysis. Aggressive investors could use the Nov. 7 high at 16.73 as an early buy trigger. Keep in mind that those buy points entail more risk.
IMGN stock dropped 0.3% midday Monday.
A key technical metric to watch is the relative strength line. IMGN stock's RS line is pretty far from its old highs, which makes sense given the stock's lengthy consolidation. When the stock breaks out, the RS line should hit a new high to confirm the stock as a market leader.
With the stock market outlook in a confirmed uptrend, investors have the opportunity to raise market exposure through buying stocks making strong breakouts.
Best Stocks To Buy And Watch
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to buy and watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| First Citizens | 1,450.56 | Cup with handle | |
| Lululemon Athletica | 406.94 | Flat base | |
| Microsoft | 366.78 | Cup base |
Source: IBD Data As Of Nov. 27, 2023
Follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on the best stocks to buy and watch and the stock market.
