Incyte Corp. is supposed to show good financial results

Investment idea by DTI Algorithmic

DTI Algorithmic
Feb 8 · 2 min read

Exchange: NASD Sector: Healthcare Industry: Biotechnology

Entry strategy

Price: $73–76 Stop-loss: under $66,12 Take profit: $88, then $101 Investment horizon: until the middle of 2019

Company details

Incyte is a large international biopharmaceutical corporation. The company develops and sells cancer drugs. Incyte’s flagship products are Jakafi and ICLUSIG. Ruxolitinib, Tofacitinib, Epacadostat and other drugs are at 2–3 stages of clinical trials.

Incyte’s site

The company collaborates with leading international corporations in the healthcare industry, including Novartis International Pharmaceutical Ltd., Eli Lilly and Company, Agenus Inc., Pfizer.

Incyte was founded in 1991 and is headquartered in Delaware.

The issuer’s capitalization is more than $17 billion (group + Large).

The fundamental description of the idea

In general, the healthcare industry in which this corporation operates is defensive when the stock market falls. Therefore, the purchase of this tool does not contradict our expectations for the current year.

Forecasts for 2019

Incyte’s revenue has been growing very fast for the last 5 years. In 2017, it increased by almost 39%. At the same time, the company suffered a net loss and negative net cash flow from operating activities due to a doubling of research and development costs.

Investments made in 2017 could provide good financial results during 2018. Judging by the results of the company’s work in the first three quarters of 2018, the chances of this are quite high.

Incyte Corp. plans to publish reports for the fourth quarter of 2018 and the entire 2018 on the 14th of February, 2019 before the opening of the main trading session. Analysts’ consensus forecasts show high expectations for the company’s financial results.

Current financial results of Incyte Corp. and analysts’ consensus forecasts. Source: MarketWatch

Technical analysis (trading plan)

Technical analysis and trading plan for Incyte Corp. ($INCY). Source: TradingView

Originally published at Блог DTI Algorithmic.

DTI Algorithmic

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