One of the best-performing stocks in the last 30 years is about to see an "explosive" move higher, according to a top technician.
On CNBC's "Options Action" Friday, Cornerstone Macro's Carter Worth explained that after two years of consolidation, biotech stocks are about to play catch up to the market, and one way to take advantage of the move is with one of its top constituents – Amgen.
"What we know about biotech is it was the leading single place you could be from 2011 to 2015," Worth explained. The Nasdaq biotech ETF, the IBB, soared more than 330 percent between January 2011 and July 2015. "Then it drew down 38 percent … if it's ever going to catch up this is the time it's going to do it."
Targeting at Amgen specifically, Worth looked at a chart dating back to 1984 and compared it to the S&P 500 as well as other "mature growth" stocks, including McDonald's, Nike, Home Depot and Apple. Over the time period, Amgen rallied close to 100,000 percent, far outperforming the S&P 500's 1,373 percent move, McDonald's nearly 6,000 percent rise, Nike and Home Depot's more than 20,000 percent move and Apple's 35,163 percent rally. Worth added that if one had invested $10,000 in Amgen in 1984, it would have returned nearly $10 million.
"This is arguably the single best-performing equity over the past 30 years," said Worth. "It's ready to go again, having rested for two or three years." After the years of consolidation, Worth noted that a wedge pattern has formed on the chart.
"To my eye we are going to explode out to the upside," he said. "I think big gains … and a setup for a powerful advance from the No. 1 stock ever," Worth added.