Q2 STOCKS TO BUY

Healthcare Stock Paints Intriguing Technical Picture

EW just pulled back to a historically bullish trendline on the charts, too

Digital Content Manager
Jun 3, 2020 at 1:34 PM
facebook X logo linkedin


Last week, we looked at a list of the best performing S&P 500 stocks in June, going back 10 years, courtesy of Schaeffer's Quantitative Analyst Chris Prybal. Today, we'll be breaking down another name on the list, medical supply manufacturer Edwards Lifesciences Corp (NYSE:EW), which is also flashing a historically bullish technical signal on the charts. 

During the last decade, EW averaged a 6.4% one-month return in June, with nine out of 10 returns positive. This is good for second-best overall and the second-best healthcare stock out of the eight that also made their way onto the list. 

This isn't the only historically significant data that could work in EW's favor. The equity just came within one standard deviation of its 40-day moving average, according to a study from Schaeffer's Quantitative Analyst Chris Prybal. This study shows four similar moves occurring in the last three years. EW was higher one month after three of these four signals and averaged a one-month return of nearly 4%. A similar move, from the stock's current perch at $74.32, would put it just below the $78 -- a region the stock hasn't closed north of since late-February. 

A closer look shows EW staging an impressive bounce off its mid-March bottom, up over 44.3% since its March 23 annual low of $52.41. While the security has petered off just below the $76 level, which coincides with the security's year-to-date breakeven, in recent months, several extra layers of resistance, including the 320-day moving average have come into play. Year-over-year the stock boasts a 28% gain. 

Options bulls are already on board. In the past two weeks, 3.18 calls were picked up for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 94% of all other readings from the past year, too, suggesting a much healthier appetite for long calls of late. 

That being said, for those wanting to speculate on EW's next move, options look like a prudent play. The equity's Schaeffer's Volatility Index (SVI) of 32% stands in the 15th percentile of its annual range. This means the options market is pricing in relatively low volatility expectations at the moment. 

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter