|Bid||79.71 x 1800|
|Ask||82.71 x 800|
|Day's Range||80.12 - 81.27|
|52 Week Range||62.01 - 87.07|
|Beta (3Y Monthly)||0.33|
|PE Ratio (TTM)||25.56|
|Earnings Date||Jul 30, 2019|
|Forward Dividend & Yield||2.20 (2.76%)|
|1y Target Est||92.14|
When it comes to investing, a new price trend is something we all can enjoy. But when you can effectively hedge that bet with a pairs trade in CVS (NYSE:CVS) and Merck (NYSE:MRK), that's a prescription for profits. Let me explain.Source: Shutterstock It nearly goes without saying interest rate policy and the U.S. China trade war have been on most investors' minds of late. Some days Wall Street is bullish, while on others, it's seemingly the end of the world as we know it. But for MRK stock and CVS shareholders, real catalysts off and on the price charts are happening right now.On Thursday, the Donald Trump administration announced it is walking away from a plan to eliminate rebates large pharmaceutical companies pay to pharmacy benefits managers, which negotiate drug prices on behalf of buyers such as insurance companies. Bottom line, for a drug manufacturer like Merck, this is potentially a huge headwind. Likewise, it could be a boon for CVS stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsUnder the scrapped rebate proposal, Merck would more or less have been able to retain its lucrative pricing model. Now though, and with the Trump administration still searching for a victory in promised lower healthcare costs to individuals, it's likely drug companies are going to be casualties to that end. That's bad news for MRK shareholders. And conversely, much of what's been ailing CVS stock has been eradicated. * 7 Dependable Dividend Stocks to Buy And on the price charts of CVS and MRK, reaction to the reports have confirmed the prescription for long-term profits by pairing up an improving CVS stock and a fatigued-looking MRK stock. Buy CVS StockShares of CVS stock have been correcting for the past four years, since hitting an all-time-high of $103.64 in July 2015. The days of CVS' bearish cycle, however, don't just look numbered -- they appear to be all but over.As the monthly chart shows, this week's news-induced bid has confirmed a monthly candlestick pivot low in shares of CVS. More importantly, the low is supported by the 62% retracement level dating back to the financial crisis. Further, stochastics is bullishly backing up the idea of a meaningful bottom as the indicator signals a crossover in oversold territory.CVS Stock Trade: Buy CVS stock today, look for upside towards $75-$80 in the coming months and size your position accordingly based on pattern risk of around 11%. Short MRK StockShares of MRK stock look prone to a larger cycle of profit-taking following what I'll call a period of bullish influenza after breaking out last July from a corrective base-on-base pattern. The news this week has had the effect of shaping a confirmed bearish engulfing reversal candlestick.The monthly chart in Merck also shows a bearishly supportive setup, as the indicator has been bearishly diverging from the price as new highs were hit. Net, net the technical evidence points to profit-taking and possibly an even larger bearish cycle for MRK stock.MRK Stock Trade: Short MRK stock today. Similar to CVS, a slightly larger stop-loss of 11% looks appropriate for containing dollar risk. Exit the position if the topping pattern turns lethal for bears and shares manage to make new highs.Investment accounts under Christopher Tyler's management do not own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies, related musings or to ask a question, you can find and follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post A Pairs Prescription for CVS Stock and Merck appeared first on InvestorPlace.
If it hits the top of its price range and underwriters buy their full allotment, Livongo would have an initial market cap of about $2.1 billion.
The U.S. Justice Department is reportedly pursuing a criminal investigation as to whether J&J (JNJ) lied about the possible cancer risk associated with its talcum powder.
Former U.S. Vice President Joe Biden, the front-runner in the Democratic presidential race, unveiled a healthcare plan on Monday estimated to cost $750 billion and paid for partly by higher tax rates for the wealthy and doubled tax rates on capital gains. "The Biden plan to protect and build on the Affordable Care Act" seeks to strengthen the signature healthcare plan, popularly known as Obamacare, enacted under former Democratic President Barack Obama. Biden was Obama's vice president for eight years.
Pharmaceutical stocks are tanking on Friday, and Merck & Co., Inc. (NYSE: MRK) has been along for the ride. On Friday morning, Benzinga Pro subscribers received three options alerts related to Merck. The trade represented an $75,000 bearish bet that Merck would be trading at or below $94 roughly a year from now.
Investors' skepticism runs rife as Trump drops the drug rebate proposal, pushing drugmakers to take center stage with regard to the controversial drug pricing issue.
The FDA assigns an orphan drug designation to AstraZeneca's (AZN) Imfinzi for the treatment of small cell lung cancer, the most aggressive type of the ailment.
The 30-stock index closes above the 27,000 mark for the first time. It took nearly 372 days for the blue-chip index to cross the 27,000 mark from when it reached the 26,000 mark in January 2018.
A drug to treat Alzheimer's disease is increasingly proving elusive, despite billions of dollars spent on research and development. Johnson & Johnson (NYSE: JNJ )'s Janssen unit; Merck & Co., Inc. (NYSE: ...
In early morning trading, futures on the Dow Jones Industrial Average are up 0.29%, and S&P 500 futures are higher by 0.22%. Nasdaq-100 futures have added 0.20%.Source: Shutterstock In the options pits, calls continued their usual leadership role on Thursday, while overall volume settled to average levels. Specifically, about 18 million calls and 14.4 million puts changed hands on the session.Meanwhile, over at the CBOE, the single-session equity put/call volume ratio normalized after Wednesday's super low reading. The metric climbed back to 0.61 to end in the location of the 10-day moving average.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOptions traders swarmed the following three stocks. Bed Bath & Beyond (NYSE:BBBY) continued its trend of earnings deterioration with weak numbers for the fiscal first-quarter. Merck (NYSE:MRK) and CVS Health (NYSE:CVS) both saw sharp moves following news that the White House was ending its drug rebate plans.Let's take a closer look: Bed Bath & Beyond (BBBY)A quick Google search following this week's earnings release for ailing retailer, Bed Bath & Beyond, reveals a litany of ominous-sounding headlines. And, well, they're all probably justified. For the fiscal first-quarter, the company posted a loss of $2.91 per share. After adjusting for miscellaneous items, however, earnings came in at 12 cents per share, marking a 68% decline. Comps were down 6.6%, and revenue grew to $2.57, which was well below last year's $2.75 billion in the same quarter.Sellers took to the streak driving BBBY stock as low as $10.43 before a rapid recovery carried it back near the high of the day. The chart continues to look like garbage, warning anyone who cares about technical analysis to stay far away. That said, the intraday rebound was impressive and could deliver some short-term relief. * 7 Short Squeeze Stocks With Big Upside Potential On the options trading front, puts were all the rage. Total activity ballooned to 777% of the average daily volume, with 108,356 contracts traded; 70% of the trading came from call options alone.The expected move ahead of earnings was $1.54 or 13.3%, so with the stock rallying back to near unchanged on the session, anyone who shorted volatility before the report and held steady through the morning drop came out a big winner. CVS Health (CVS)CVS Health has been in decline for years, but scored a rare win yesterday after the White House halted plans that "would have curtailed rebates that drug manufacturers pay pharmacy benefit managers (PBMs) in return for winning placement of high-priced products on lists of drugs that insurers cover with affordable co-pays."Although CVS stock closed up 4.68% on the session, it was mostly a sell-the-news reaction. It was up as much as 8.6% before sellers swarmed and capitalized on the gift. The chart still looks terrible, but Thursday's jump did complete a five-month basing pattern, so there is a chance that a short-term bottom has been put in place.On the options trading front, optimism drove traders into call options throughout the session. By day's end, activity grew to 539% of the average daily volume, with 170,938 total contracts traded. Calls claimed 66% of the session's sum.Implied volatility jumped to 31% or the 41st percentile of its one-year range. Premiums are now pricing in daily moves of $1.13 or 1.9%. Merck (MRK)CVS Health wasn't the only stock impacted by the White House announcement. Companies that manufacture and sell drugs like Merck were whacked after the news. Barrons has an insightful take you can find here. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The single day 4.5% drop took some $7 billion off the market cap of MRK stock and pushed it back below its 50-day moving average. The uptrend is now on shaky footing, and the stock is in technical no man's land. If the weakness persists, use $77 as your first downside target. It would take a recovery to $85 before negating the bearish signals created by Thursday's swoon.On the options trading front, put popularity only slightly edged out calls. By the closing bell, activity climbed to 392% of the average daily volume, with 100,295 total contracts traded. Puts accounted for 52% of the take.The plunge did light a fire under implied volatility, driving the measure up to 24% or the 52nd percentile of its one-year range. Premiums are officially pumped, suggesting short options strategies are the way to go if you're inclined to trade here.As of this writing, Tyler Craig didn't hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post Friday's Vital Data: Bed Bath & Beyond, CVS and Merck appeared first on InvestorPlace.
The index endured a turbulent week but gained after the Fed Chair indicated that a rate was likely later this month.
Glaxo (GSK) provides updates on HIV regimens. FDA accepts Merck (MRK) & Sanofi's (SNY) regulatory applications for review.
The Trump administration announced Thursday that it's deciding to withdraw its proposal to eliminate rebates from government drug plans.
Albeit in modest fashion, stocks gained Thursday amid heightened expectations the Federal Reserve could proceed with lowering interest rates this month, sending the Dow Jones Industrial Average above 27,000 for the first time.Source: Shutterstock While it appears unlikely that the Fed will lower rates by 50 basis points this month, markets are increasingly comfortable with the notion of 0.25% reduction followed by more of the same in September.The Nasdaq Composite was today's offender among the major U.S. indexes, sliding 0.08% while the S&P 500 gained 0.23%. The Dow added 0.85%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsGains for the Dow and S&P 500, in particular, could have been better if not for weakness in the healthcare sector, the second-largest sector weight in the S&P 500. In late trading, all three of the Dow's pharmaceutical names were lower with Merck & Co. (NYSE:MRK) being the index's worst loser with a loss of 4.5%. Politics were at play."The Trump administration is backing down from a controversial effort to lower drug prices, only days after its first major industry reform was overturned by a federal judge," reports CNN. * 10 Stocks to Sell for an Economic Slowdown Likewise, Sen. Kirsten Gillibrand (D-NY) is looking to jump-start her scuffling 2020 presidential campaign by unveiling ideas for lower drug prices. In other words, pharmaceuticals stocks were hit by both political parties today.Now, onto some Dow winners. Speaking Of Healthcare…It was not all bad news for Dow healthcare names today. Just look at UnitedHealth (NYSE:UNH), which surged 5.53%. The managed care giant, often highlighted in this space, has been finding its groove in recent weeks and stands to benefit from lower drug prices.Keeping with the theme of selling pharmaceuticals, shares of Walgreens Boots Alliance (NASDAQ:WBA) slipped 0.01% after the company said it will raise its quarterly dividend by 4% at 45.75 cents a share, marking the 44th consecutive year the company has boosted its payout. A Bullish NoteShares of Microsoft (NASDAQ:MSFT) nudged up 0.4% after Cowen initiated coverage of the stock with an "outperform" rating and a price target of $150. The stock is up 37% year-to-date and 19 of 20 analysts have the equivalent of "strong buy" ratings on it. A Fine FinancialGoldman Sachs Group (NYSEARCA:GS) jumped 2.61% on above average volume on news that the Wall Street behemoth is looking to extend its reach in the world of digital assets. As was noted here yesterday, a slew of financial services stocks report earnings next week, and Goldman is one of the bellwethers of that group, so today's buying in the name could also be a sign traders are expecting the stock to rally into earnings. Bottom Line: Let's Talk About EarningsWe have been highlighting potential areas for concern related to earnings season. With the calendar about to bring a spate of reports, investors should brace for some disappointments."Because of uncertainty around trade wars and global growth, a bulk of U.S. companies are lowering the bar for their second-quarter earnings. Of the 114 companies that have issued earnings guidance for the period, 77% have issued negative forecasts, according to data from FactSet," reports CNBC.If there is a silver lining, it is that many of these dour expectations may already be baked into stocks.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post Dow Jones Today: More Fed Fun, but Healthcare Weakness Caps Gains appeared first on InvestorPlace.
The drug companies provide rebates to PBMs in exchange for distributing their products.
U.S. equities were hitting new record highs, with the Dow Jones Industrial Average topping 27,000 for the first time ever while the S&P 500 hits 3,000. The catalyst is an all too familiar one: The promise of more cheap money from the Federal Reserve, with chairman Jerome Powell strongly signaling a rate cut later this month in response to uneven economic data.But the gains are being trimmed in mid-day trading after a strong inflation report suggests the U.S.-China trade spat is starting to have an impact on import prices. And higher inflation would undermine the Fed's desire to lower rates. Stocks, obviously, wouldn't react well to that. * 10 Stocks to Sell for an Economic Slowdown A number of big drug stocks are getting hit amid the pullback on reports the Trump Administration has pulled its plan to eliminate rebates from government drug plans. Had this rule gone through, drug stocks would've been relatively unaffected. Investors now fear the administrations next move to try to lower drug prices. Here are four drug stocks to sell on the news:InvestorPlace - Stock Market News, Stock Advice & Trading Tips Pfizer (PFE) Click to EnlargePfizer (NYSE:PFE) shares are dropping hard out of a four-month uptrend threatening to cut below both its 50-day and 200-day moving averages. This comes after the stock bonked on resistance from its December high and remains mired in a sideways range that has been in play since last summer.The company will next report results on July 30 before the bell. Analysts are looking for earnings of 75 cents per share on revenues of $13.4 billion. When the company last reported on April 30, earnings of 85 cents per share beat estimates by 10 cents on a 1.6% rise in revenues. Eli Lilly (LLY) Click to EnlargeShares of Eli Lilly (NYSE:LLY) are falling down and out of a four month consolidation range, returning to levels not seen since December. This caps a decline of more than 15% from the highs hit in late March. With the 50-day and 200-day moving averages already lost, watch for a drop down to mid-2018 support near $105, which would be worth a loss of another 4% from here. * 3 Forgotten Tech Stocks Worth Remembering The company will next report results on July 30 before the bell. Analysts are looking for earnings of $1.45 per share on revenues of $5.6 billion. When the company last reported on April 30, earnings of $1.33 per share matched expectations on a 2.6% rise in revenues. Merck (MRK) Click to EnlargeMerck (NYSE:MRK) shares are dropping hard and fast away from the two-month consolation range that capped a nice 20% rally off of its 200-day moving average. The stock has gained more than 50% from the lows seen in early 2018 and a ripe for a significant profit taking pullback -- likely resulting in a revisiting of the April lows.The company will next report results on July 30 before the bell. Analysts are looking for earnings of $1.16 per share on revenues of $10.9 billion. When the company last reported on April 30, earnings of $1.22 per share beat estimates by 17 cents on a 7.8% rise in revenues. Bristol-Myers Squibb (BMY) Click to EnlargeShares of Bristol-Myers Squibb (NYSE:BMY) have returned to lows near $44 that have been tested multiple times in a pattern going back to early 2017. The range is rather wide, with prices down more than a third from the highs hit in February 2018. The company is continuing to work with regulators to waylay concerns over its proposed acquisition of Celgene (NASDAQ:CELG). * 10 Best ETFs for 2019: The Race for 1 Intensifies The company will next report results on July 25 before the bell. Analysts are looking for earnings of $1.06 per share on revenues of $6.1 billion. When the company last reported on April 25, earnings of $1.10 beat estimates by two cents on a 14% rise in revenues.As of this writing, William Roth held no positions in the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell for an Economic Slowdown * 7 Marijuana Penny Stocks That I May Buy * 7 of The Best Schwab ETFs for Low Fees The post 4 Drug Stocks Getting Smashed appeared first on InvestorPlace.
Investors are worried that the Trump administration’s war to rein in drug prices is just heating up—and that big pharma could be the next target.
Investing.com – The Dow hit a new high as it topped 27,000 for the first time on Thursday thanks to a huge gain for health insurance giant UnitedHealth Group and sizable for gains for Boeing (NYSE:BA) and Goldman Sachs (NYSE:GS).
In early May, President Donald Trump announced that he would be requiring Big Pharma to list the prices of their drugs in their TV advertisements.
The FDA accepts for review Sanofi's (SNY) BLA for isatuximab as a potential treatment for relapsed/refractory multiple myeloma. The FDA will declare its decision by April 2020.
Pfizer stock has run sideways this year, behind pharma stocks. Recent news has been upbeat with a drug approval and earnings beat. But the question remains: Is Pfizer stock a buy right now?