Should Blaze Ahead This Year

 | Feb 06, 2013 | 6:21 AM EST
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So, on Tuesday, I said that you want to buy a pullback. But little did I realize that, by Tuesday night, I would have not one, but two companies with stocks that fit precisely with that description. Both are consistent. Both are top of their industries. I think both are already set up to have a terrific year.

The first is Eaton (ETN), which reported a very confusing quarter because of its Cooper acquisition, but which gave you a $0.25 accretion figure that blew me away. Put simply, so much is going right for Eaton that it's amazing. Everything from the aging of the power grid, to the need to control energy costs, to the fluid controls on a plane or in oil-and-gas drilling -- this company's all in. Eaton has gone from a company that used to live and die with Class 8 truck builds, to a name that represents the ultimate in power-grid accountability, be it fixing Hurricane Sandy damage or insuring Super Dome never goes down again. This is an incredible story.

Plus, I believe we'll be seeing a dividend boost here very soon, and I bet a stock-buyback will start up in order to clean up the overage from the Cooper deal. The Cooper deal makes it possible for the company to spin off truck and auto -- although, put simply, I don't think Eaton wants to do this. It is cyclical. The rest is much more secular.

What a story. CEO Sandy Cutler is about as close to an industrial genius as you are going to get in this country. Is there a more important part of the bottom line than managing power? No. He's done a remarkable job putting these two together, and he will be taking share for years from this deal.

But maybe you don't want a growth cyclical. How about a growth pharmaceutical name? Remember those? Allergan (AGN) is probably the premier growth pharma out there. On my Mad Money show, every quarter I have on David Pyott, the incredibly smart CEO, just like I have had for years and years. I always have to start the segment by talking about how the guidance is conservative and that buying it on the weaker guidance is a terrific way to make money, and it has continually made money.

I have always liked it, because each year Allergan seems to unveil a blockbuster drug that just takes off. That includes last year's migraine drug and this year's overactive-bladder compound, all off of Botox.

This year, though, because Allergan has agreed to buy Map Pharmaceuticals (MAPP), Pyott has got the possibility of an at-home delivery system for a migraine medicine that could benefit millions of sufferers. It is an April proposition, and Pyott seemed awfully confident.

Who knows what will happen if he actually can compete with Regeneron's (REGN) Eylea on the macular-degeneration front with a formula that requires a much smaller number of injections? Who knows if it will be approved? Allergan is currently in stage two, but it is a terrific opportunity.

Most of the pharmas I deal with thirst after anything blockbuster, but they spend most of their time selling drugs -- many "me-too" products. Allergan's the real deal. Botox is a pipeline within a drug itself, and the company has a huge research-and-development budget to keep it hitting it out of the park. Only Allergan, Gilead (GILD) and Celgene (CELG) just keep delivering time and time again.

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