Shortly after the opening bell, we will buy 300 shares of Bristol-Myers Squibb at a price of approximately $56.50. Following the deal, Jim Cramer's Charitable Trust will own 1,200 shares of BMY, increasing its weight in the portfolio to approximately 1.9% from approximately 1.4%. Perhaps Wall Street's bad run has finally caught up. The short-term S&P, our trusted momentum indicator, reached oversold territory after the mixed session on Friday, falling to -4.1%. When the oscillator becomes oversold, our system says it's time to get opportunistic and buy shares of quality companies. In Thursday's edition of Hometretch, we noted that Bristol Myers Squibb stock's recent drop into the mid-$50s looked like an opportunity, especially since it meant the stock had given up about half of its gains from the failure of rival AbbVie's schizophrenia trial. medicine. Analysts at Jefferies now share our long-term bullish view on Bristol Myers. Analysts upgraded their rating to buy from hold on Monday and raised their price target to $70 from $63. Jefferies gave three main reasons for his call, suggesting a 25% upside from the stock's current price. Analysts believe the best-in-class schizophrenia drug Cobenfy is on track to be a huge success. They currently account for $11 billion in peak sales for the drug, well above the current Wall Street consensus of $6 billion. Jefferies has also become more bullish on the Bristol-Myers pipeline. One drug highlighted by analysts is Milvexian, a blood-thinning drug currently in three late-stage trials for the treatment of atrial fibrillation, acute coronary syndrome, and secondary stroke prevention. The third upside for Jefferies was greater clarity on the income statement and Bristol-Myers' ability to navigate the upcoming patent abyss, especially from higher Copenfi sales. We agree with all three reasons and believe the stock trading at less than 8 times estimated 2025 earnings per share with a 4.4% dividend yield is too cheap. We first bought Bristol Myers in late November and most recently added it to our position on December 4th. (Jim Cramer's Charitable Trust is long BMY. See here for a full list of stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim takes a trade. Jim waits 45 minutes after a trade alert is sent before buying or selling a stock in his charitable fund's portfolio. If Jim talks about a stock on CNBC TV, he waits 72 hours after the trade alert is issued before executing the trade. The above Investment Club information is subject to our Terms and Conditions and Privacy Policy, as well as our Disclaimer. No obligation or fiduciary duty exists or is created by your receipt of any information provided in connection with the Investment Club. No specific results or profits are guaranteed.
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We are adding to our position in a stock that just received a big endorsement on Wall Street
