Bothered by the S&P 500's struggles in 2022? Don't look at medical stocks — most are floundering as Americans' attention turns away from the Covid pandemic.
In fact, according to the March IBD/TIPP Poll, just 9% of Americans surveyed cited the pandemic as a top issue facing the country today.
That's down from 24% in February and 33% in January as the omicron variant emerged and overwhelmed the globe. Instead, people are concerned about the economy and national security amid the war in Ukraine and lack of trust in politicians.
But that doesn't mean there aren't ways to make money investing in medical stocks. You just have to know where to look. Here are four that have broken out or are staring down buy points right now, according to MarketSmith.com.
Top Medical Stock Breaks Out
The most notable of the group includes Bristol Myers Squibb, a top-ranked medical stock.
Bristol Myers shares topped a 65.95 buy point out of a cup-with-handle base on Feb. 7. Shares closed narrowly within the 5% chase zone on Friday, up 0.7% at 68.87. That buy zone runs from 65.95-69.25. Investors are encouraged to take some profits when a stock rises 20%-25% above its buy point.
The company is well known for its cancer blockbuster, Opdivo. Opdivo competes against Merck's bread-and-butter medicine, Keytruda. This month, the Food and Drug Administration approved a combination of Opdivo and chemotherapy for a group of patients with lung cancer.
Bristol Myers announced it will report first-quarter earnings on April 29. Analysts who cover the medical stock expect Bristol Myers to earn $1.94 per share, minus some items, on $11.41 billion in sales. Earnings would pop 11% and sales would inch 3% higher.
Meanwhile, fellow medical stock Harmony Biosciences broke out of a cup base with a buy point at 45.99 on Wednesday. But shares haven't retained their breakout gain and, on today's stock market, fell 3.9% to 43.86.
Shares could become actionable if Harmony retakes its buy point. But investors beware. CAN SLIM investors are suggested to sell a stock that falls 7%-8% below its entry. Harmony are now 4.6% below their buy point.
Eli Lilly Is In A Sprint
Other medical stocks are eyeing their buy points.
Eli Lilly shares are making a run at their 284 cup-base entry. The medical stock is now well above both its 50-day and 200-day moving averages — a bullish point. Shares closed at 266.30 on Friday, up 0.1%.
Investors are likely enthused by Eli Lilly's work in Alzheimer's disease. It's working on a treatment called donanemab. Like Biogen's approved drug, Aduhelm, donanemab clears abnormal plaque in the brain tied to the neurodegenerative disease.
Aduhelm gained approval based solely on that mechanism. Biogen still has to prove removing the plaque leads to a benefit on cognition. Still, medical stock analysts largely expect Eli Lilly's drug to also gain FDA approval.
Finally, Novo Nordisk is also consolidating, though the medical stock has had more fits and starts in its journey to a breakout. Shares fell in line with their 50-day mark on Friday, down 3.1% to 101.26. The buy point is 117.45. But a stock that falls below its 50-day line usually remains under pressure.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
