NEW YORK (TheStreet) -- Successful investors use the same strategy as successful fishermen: You put your line in the water; if you catch something, you stick around. If you don't, you go fish somewhere else.Fisherman love gadgets and tools to help them find the fish. Sometimes fish show up where they are supposed to, sometimes not. Fishing is not about following the gadgets, however; it's about following the fish. It is the same with stocks. Right now, the biotech sector, for the umpteenth week in a row, continues to be the leading sector in my Best Stocks Now app.
When I write about biotech companies, or talk about them in the news, I hear from investors about why this company or that stock should be doing better. This company just received a $50 million line of credit. Or that company just hired a new technology officer. But the stock does not listen. It goes where it wants to go. So I follow the stocks. Two weeks ago, my Best Stocks Now app declared Regeneron ( REGN) to be my top stock, not just in biotech, but among the entire 3,300-plus stocks that I follow. I wrote an articleabout my No. 1 stock pick at that time.
With a forward price-to-earnings ratio of 18.4 and an expected growth rate of 25.1% over the next five years, the price-to-earnings-to-growth ratio is still a very favorable 0.73. Furthermore, when I carry out earnings estimates over the next five years at a 25% growth rate and apply an appropriate multiple, I compute a five-year target price of $106.