Latest news with #CNBCPro
CNBC
02-07-2025
- Business
- CNBC
This sub-$10 pharma stock is attempting a bullish breakout, according to the charts
Healthcare shares performed well on Tuesday, and one notable mover was Viatris (VTRS) . The stock popped up in a routine review of S & P 500 components, where we constantly look for potential basing formations or bullish patterns — whether near highs or attempting to bottom after long periods of underperformance. VTRS clearly falls into the latter category. As we can see, the stock is attempting to break out of two overlapping inverse head-and-shoulders patterns. A decisive move through the $9.50 area would trigger the larger formation, setting up a potential target near $12.30. A logical stop loss would be just below 8.65, near the right shoulder of the smaller pattern and also near the rising 50-day moving average. Now, it's not as if VTRS has sat out the epic market-wide snapback over the past few months—far from it. The stock is already up 38% from its April low, outperforming the S & P 500 and many of its components over that time frame. Still, that recovery pales in comparison to the preceding, nearly 50% decline it suffered from late 2024 through April'25. Looking back at its erratic trading since 2022, a few things stand out. First, the stock has gone through a series of sharp multi-month declines, followed by powerful snapback rallies. And notably, those rallies have consistently produced larger percentage gains than the preceding drawdowns. Another clear takeaway from the chart: in three of the last four rallies, the stock went on to make a higher high relative to the most recent peak. That's the blueprint VTRS bulls will be watching for again now. Thus, if that pattern is to repeat, VTRS likely has more upside ahead. Finally, zooming way out to include price action over the past two decades, it's clear that VTRS remains well below its 2015 highs—but the current comeback is starting to resemble a prior major recovery. In both 2008 and now, 2025, the stock undercut clear multi-year support levels during broad market crashes, only to reverse sharply higher and reclaim those same levels. A few months later in early 2009, the stock went on to break through a steep downtrend line that had been in place for two years. That breakout marked a turning point, triggering an even stronger recovery that extended for several years. Currently, VTRS soon could be confronting an even longer-term downtrend line, drawn from the 2015 peak. From a technical perspective, the next obvious step would be to break above that line. If it can do so —especially while taking advantage of the bullish chart patterns mentioned earlier—then the tide may finally turn. Momentum, which has been negative for years, could shift toward a more constructive path going forward. First step – break out from the small bullish formations. DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
CNBC
30-06-2025
- Business
- CNBC
These Nasdaq stocks have led the bounce since 'liberation day' back to all-time highs
In the market's stunning recovery, some stocks are more to thank than others. Wall Street sees a handful of the best performers having more room to run. The S & P 500 notched an all-time high on Friday, the latest milestone in the equity comeback after President Donald Trump 's tariff policy sent markets into a tailspin. The Nasdaq Composite has surged with tech stocks leading the recovery, driving the index more than 15% higher since Trump first announced the levy plan on April 2, the day he dubbed "liberation day." CNBC Pro screened for Nasdaq members with market caps of at least $5 billion that have led the market's rebound. From there, we looked for names that have buy ratings from at least 65% of analysts and have average price targets implying upside of 15% or more. All of the stocks on this list are covered by at least 15 Wall Street analysts. Data is current as of midday Friday and is from FactSet. Here are the names that made the list: BridgeBio Pharma has surged more than 30% since April 2, bringing its year-to-date gain above 61%. Earlier this month, the U.S. Food and Drug Administration granted a BridgeBio subsidiary orphan drug status for infigratinib, a treatment for a form of dwarfism known as hypochondroplasia. Four out of five analysts have buy ratings on the stock, according to FactSet. The typical price target suggests shares can jump more than 34%. BBIO 3M mountain BridgeBio, 3-month chart AppLovin is one of the better-known names of the list. Shares have rallied more than 19% since April and are now up more than 6% in 2025. A chunk of that gain came after the company last month reported better earnings than analysts expected. About 2 out of every 3 analysts have buy ratings on the stock. Wall Street sees much more upside ahead, with an average price target implying the stock can soar more than 41%.
CNBC
22-06-2025
- Business
- CNBC
5 income-producing stocks to buy for the second half
Uncertainty in the stock market and in the economy may have investors seeking stability in companies that pay regular dividends. Those equities are often seen as a hedge against volatility due to their their reliable income. Stocks fell early last week on concern over the Israel-Iran conflict, but closed marginally higher in the latest five days after the Federal Reserve opted to keep rates unchanged at its June meeting. There could be more volatility ahead after the U.S. bombed three nuclear sites in Iran over the weekend. But for all the attractions of income-producing stocks, not all dividend payers are created equal. To find stocks that may be poised to outperform in the second half, CNBC Pro screened for those in the ProShares S & P 500 Dividend Aristocrats ETF that are rated buy by at least 51% of the analysts covering the stock, and that have at least 10% upside to the average price target, according to FactSet. They also had to have a dividend yield of 1.5% or more, above the S & P 500 average of 1.29%, and covered by at least 10 analysts. Drugmaker AbbVie has a dividend yield of 3.5%, and 15% upside to analysts' consensus price target. The stock is up about 4% year to date. The $328-billion market cap company said earlier this week that its blood cancer treatment, Venclexta, failed to significantly improve overall survival rates in a recent late-stage trial . However, it also said Wednesday its migraine drug, Qulipta, was found in a late stage trial to be superior to a widely-used generic treatment. In late April, AbbVie reported a first-quarter earnings and revenue beat and raised its full-year earnings-per-share guidance. The North Chicago-based company is also investing at least $10 billion in manufacturing in the United States, including four new plants. While its once blockbuster anti-inflammatory drug Humira has seen declining sales since it lost patent protection in 2023, AbbVie has two new immunology treatments, Skyrizi and Rinvoq. Also on the list is Coca-Cola , which has 14% upside to the average analyst's price target and a 2.9% dividend yield. The soft drink giant also topped quarterly earnings expectations in late April and largely reaffirmed its full-year outlook. It called the effect of higher tariffs "manageable," but expects some short-term choppiness tied to trade conflicts. "I think there's going to be some disruption around a number of categories and industries around us, which will have some effect with the consumers," Coke CEO James Quincey said on the company's conference call, "You can see the consumer sentiment has been impacted, [but] the consumer spending ... still seems robust." Shares have risen nearly 11% so far this year. Lowe's is another company that pays an above-average dividend and is sticking with its full-year forecast in the face of tariffs. Investments in stores, customer service and technology have helped the home-improvement retailer navigate "near-term uncertainty and housing market headwinds," CEO Marvin Ellison said in the company's earnings release in May. The stock has 25% upside to the average analyst price target and a 2.3% dividend yield. It has lost 14 % year to date. — CNBC's Amelia Lucas and Melissa Repko contributed reporting.
CNBC
20-06-2025
- Automotive
- CNBC
Using options to buy the recent dip in this used car retail stock
Despite beating earnings estimates and maintaining solid profit margins, Carvana (CVNA) has been under pressure recently, losing more than 9% in the last eight sessions — all on tariff scare headlines. While tariffs are a legitimate concern for many companies, this kind of sharp drop is a textbook example of a knee-jerk reaction — and the market is full of them. As a mean reversion trader, the goal is to identify these overreactions and take the other side when the setup aligns. In this case, I'm using a couple of key technical indicators to spot whether CVNA is setting up for a bounce: RSI (relative strength index): RSI is a flexible indicator that helps identify both trend reversals and continuations. In this case, the signal is pretty clear — RSI reversed course on 6/26 and has been climbing since, suggesting that the recent bearish momentum may be fading. Support/resistance: Support and resistance levels are often simple to spot — and in the chart below, you'll see clear support around the $280 level. What's interesting is that CVNA is starting to bounce right off that zone, reinforcing its significance. MACD (5,13,5): I like to bring the MACD indicator into my analysis from time to time because it's a solid tool for spotting early entry signals. While the standard MACD can lag a bit, I often use a short-term version to catch momentum shifts sooner. A bullish crossover — where the MACD line crosses above the signal line — typically acts as an early signal to consider getting into a trade. In this case, MACD hasn't confirmed the setup just yet, but it's definitely worth keeping an eye on for potential confirmation. The trade setup: CVNA 305-310 bull call spread To take advantage of this mean reversion setup, I'm using a bull call spread — a strategy that allows me to risk as little as $250 per trade and scale up easily by adding more contracts. For instance, using 10 contracts means risking $2,500 for a shot at $2,500 in profit, as long as CVNA closes at or above $310 by expiration — just $3 above its current price. With the stock trading near $307, the trade is built by buying the $305 call and selling the $310 call. It's a simple, defined-risk structure that gives me upside exposure without tying up too much capital. I break down setups like this in detail in my book Mean Reversion Trading , and you can explore tons of real-world examples at . Here is my exact trade setup: Buy $305 call, July 18 expiry Sell $310 call, July 18 expiry Cost: $250 Potential Profit: $250 -Nishant Pant Founder: Author: Mean Reversion Trading Youtube, Twitter: @TheMeanTrader DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
CNBC
17-06-2025
- Business
- CNBC
How to trade the S&P 500's march to record highs using options as volatility remains elevated
Equity bears are growling, and bulls are sharpening their horns. I see an imminent retest of the S & P 500's all-time high as a market melt-up seems to be underway. I want to use options to carefully capture another leg up after the SPDR S & P 500 ETF Trust (SPY) has bounced 21% since "liberation day" lows back in April and geopolitical tensions ratchet up. In the wake of President Donald Trump announcing his surprising trade tariff plans back in April, there were calls for a recession, a repeat of Black Monday and hyper-inflation. In addition, a cackle of analysts scrambled to reconfigure their bullish 2025 S & P 500 price targets substantially lower after a nearly 20% acute drop in the benchmark equity index. I was a lonely bull at the time and believed it was an overreaction to most likely a brash negotiating tactic that has been a characteristic of President Trump for decades. Leaning into the equity discount when SPY traded down to a ridiculous oversold condition at $481 was nerve-wracking — but when volatility spikes (VIX) up above 50 let alone 60, that is the time to buy stocks, not when the VIX is under 15. No matter how bad it feels to be buying. Between April 9 and May 12, the VIX plummeted from a high of 57.96 to below 20, a roughly 65% drop in just 22 days. The VIX's historic (3 rd quickest drop ever) drop signaled a swift return to market stability, with the S & P 500 rebounding over 6% by mid-May and up 20% by June from its April lows. I believe all market moves are exaggerated these days (to both the downside and upside), and that is why I believe the nerve of the bears will be tested above 6,150 in the S & P 500 Index soon. The timing of this test is remarkable as options expiration is this week, and markets are closed on Thursday for Juneteenth. This phenomenon is sometimes referred to as the "option-expiration week effect". Large-cap stocks with high options trading volume tend to see particularly strong performance during these weeks. With the VIX tethered to 20, options premium has certainly become less expensive, but by no means is it cheap. Therefore, I want to buy a call spread as selling that upside call will offset some of the cost associated with owning the opportunity to capture a new all-time high test ($613.23 on Feb. 19 for SPY). Defining risk is critical after the bounce markets have seen since early April. The trade: Buying a call spread Bought the July 18 $605 SPY call for $8.30 Sold the July 18 $620 SPY call for $2.65 This spread costs an investor $5.65 or $565 per one lot spread This spread was established when SPY was trading just above $600 ISCLOSURES: Kilburg is long this spread and long SPY. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
