The actions of Bristol-Myers Squibb Co (NYSE: BMY) have been on a steady uptrend over the past few months, while showing low implied volatility (IV). Additionally, the stock sits above the market cap level of around $150 billion and last month broke above chart resistance. With earnings results expected at the end of April and BMY sitting above all previous earnings closes in recent history following its plans to buy back 10% of its outstanding shares, now appears to be a perfect opportunity for bet on the next move of the stock higher.
There is still plenty of room for upgrades among the brokerage group, which could lead to double-digit gains on an annual and annual basis. Specifically, six of the 13 analysts in question still call Bristol-Myers Squibb stock a lukewarm “hold”. There has also been a surge in short-term interest, which has risen by around 105% in 2022. If some of this pessimism starts to dissipate, BMY could rise further.
It’s also worth noting that stocks are sporting attractively priced premiums right now. This is BMY’s Schaeffer Volatility Index (SVI) of 17%, which is in the lower 19th percentile of its annual range. In other words, options players are currently pricing in relatively low volatility expectations.
Our recommended call option for July has a leverage ratio of 9.8 and will double with a 9.6% increase in the underlying stock.
7 healthcare stocks to buy even if the economy gets sick
It’s a tough time to be an investor. However, investors of all ages should quickly learn that sell-offs, corrections, and even bear markets are an integral part of the investment cycle. Even in bear markets, some stocks outperform the market as a whole. One place to look is defensive actions. These are stocks that tend to perform strongly regardless of how the market as a whole moves.
One such sector is health care. From medicine to insurance to medical devices, it is a fertile sector for investors looking for growth. The world continues to age. This means that the demand for health care and related services will only increase in the years and decades to come.
So whether you’re ready to pull some cash aside or just looking for a few stocks to add to your watchlist, we’ve taken the time to analyze a range of healthcare stocks for you to consider.
Here are seven health care actions you should consider right now.
See “7 healthcare stocks to buy even if the economy gets sick”.