Apple Inc. (AAPL), Alcatel Lucent SA (ADR) (ALU): 4 Stocks On The Verge Of Breaking Out!

Upcoming Approval To Create New Highs

Pharmacyclics (NASDAQ:PCYC) is a clinical stage biotechnology company with a market cap of $6.65 billion. It is a company that has a great partnership with Johnson & Johnson for its lead product ibrutinib — which is involved in 26 clinical trials, five of which are in Phase 3. Moreover, the company has two other clinical products besides ibrutinib in early phase development.

With a $6.65 billion market cap, the market expects an eventual approval of ibrutinib. If the company earns an approval for all of its 26 clinical trials, the revenue could be north of $6 billion annually.

Over the last two years, PCYC has pretty much seen a continuous uptrend. Its 1,300% gain has seen very few periods of loss, although there has been two. In October 2012 the stock crashed after reaching $70, falling below $50. It then trended higher to over $95 (its current 52-week high). In April, it fell to $72.50 and has since trended higher, currently trading at $91.64.

Pharmacyclics is just $4 from a new high and has a blockbuster product that could very well be approved late this year. Biotechnology stocks have a tendency of trading considerably higher in preparation of an FDA approval, especially when the approval is likely.

Ibrutinib in particular has already been granted three breakthrough therapy designations for three different indications. Thus, I find it difficult to suggest that it won’t be approved. As a result, with it trending higher, I’d watch for new highs sooner rather than later.

Conclusion

Each of these four stocks are companies that I follow closely. I think each has great upside potential and is very cheap compared to fundamentals, or future fundamentals in the case of Pharmacyclics.

Looking ahead, I think all are strong for the reasons noted. I have no favorite, as each trades in a different industry. Thus, I suggest due diligence to determine if one or more of these attractive stocks might benefit your portfolio.

Brian Nichols owns shares of Apple, Rite Aid Corporation (NYSE:RAD), and Alcatel Lucent SA (ADR) (NYSE:ALU). The Motley Fool recommends Apple Inc. (NASDAQ:AAPL). The Motley Fool owns shares of Apple. Brian is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article 4 Stocks On The Verge Of Breaking Out! originally appeared on Fool.com and is written by Brian Nichols.

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