Home > Boards > Free Zone > Big Board Trading - Technical > $Stock*Shop*Charts*News*Option$
Followed By 621
Posts 91074
Boards Moderated 47
Alias Born 03/10/2004

Friday, January 07, 2022 11:58:06 AM

Re: None

Post# of 616343
AbbVie (ABBV) The Worst Stock to Buy This January
By: Schaeffer's Investment Research | January 7, 2022

• Drug stock ABBV rarely finishes January in positive territory

• AbbVie is one of the worst-performing stocks in January, historically

As we say welcome in the New Year with cautious optimism, it’s important to note not just the best stock picks to bet on, but also the ones to avoid. Historically, there are a notable amount of names that tend to underperform the broader market in the month of January, and Schaeffer’s Senior Quantitative Analyst Rocky White has pulled the 25 worst to give a head start on how to keep your trading portfolio clean of any misses to start the year.

Taking the trophy for the worst stock on the S&P 500 Index (SPX) to own in January, historically, is pharmaceutical concern AbbVie Inc (NASDAQ:ABBV). Per White, over the last 10 years, ABBV stock carries the worst average return, negative 6.78%. Just two out of 10 returns have moved positive, and a move of similar magnitude from Thursday’s close of $135.93, would put AbbVie stock just below $127.



On the charts, ABBV has been running within record-high territory over the past few months but is now stalling out near $135, which could mean the equity has hit a top. In fact, the drug therapy name is sitting flat on the week despite Thursday hitting a record high of $136.83, further underscoring possible technical weakness.



Also supporting White’s data -- and Schaeffer’s signature contrarian angle -- is the analyst sentiment. Heading into Friday’s trading, 10 of the 13 brokerage firms in coverage boast a "buy" or "strong buy" recommendation. Should this optimism begin to unwind, it could put added pressure on ABBV shares.

Optimism is surging in the options pits as well. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), AbbVie stock sports a 50-day call/put volume ratio of 3.83, which stands higher than all other readings of the past 12 months. In other words, long calls are more popular than usual, leaving ample room for put traders to enter the ring.

Now might be a good opportunity for put traders to speculate on ABBV with options. The security sports a Schaeffer's Volatility Index (SVI) of 21% which sits in the relatively low volatility 23rd percentile of its annual range. In other words, options traders' volatility expectations aren't that high at the moment.

Read Full Story »»»

DiscoverGold

FansUnite Reports First Quarter Fiscal 2022 Financial Results FUNFF May 27, 2022 12:49 PM

KINETIC Group (OTC:KNIT) ("KNIT") Acquires GSS Infrastructure LLC in an All Stock Transaction KNIT May 27, 2022 10:00 AM

XCPCNL Signs Letter of Intent to Acquire Communications, Financial Disclosure, and Multimedia Marketing Firm, Mcap Media, Inc. XCPL May 27, 2022 7:00 AM

Thunder Energies Signs $40 Million Funding Agreement TNRG May 26, 2022 4:30 PM

Emerging Markets Report: A Case for Uranium LAM May 26, 2022 10:07 AM

HNRC UPDATES ON SECOND $100 MILLION DOLLAR SPAC HNRC May 26, 2022 10:00 AM

Grove Inc. Upexi Division Launches Medicinal Mushroom Product Line Direct to Consumer and on Amazon GRVI May 26, 2022 9:07 AM

SciSparc Announces Ethics Committee Approval to Conduct a Phase IIb Trial in Tourette Syndrome SPRC May 26, 2022 8:35 AM

Branded Legacy, Inc. Signs LOI To Acquire First Patent Thomas Pepper Johnson To Join Company's Executive Team BLEG May 26, 2022 8:30 AM

Dalrada Continues Upward Trajectory with 252% Growth in Third Quarter 2022 Financial Results DFCO May 26, 2022 8:00 AM

Atlanta Based Specialty Realty Group Reorganizes, Changes Business Plan & Leadership TNRG May 25, 2022 8:00 PM

OTC: ILUS, ILUS International (Ilustrato Pictures International Inc) Agrees Terms With an Acquisition Delivering Upwards of $100 Million in Annual Revenue ILUS May 25, 2022 11:52 AM

Branded Legacy, Inc. To Introduce New Delta 9 blend THC-0/Delta-8 Blend Gummies Sell Out Again BLEG May 25, 2022 8:30 AM

Goldshore Resources Announces Public (NSERC & MITACS) and Educational (Lakehead University) Tri-Party Institutional Partnership with Alliance Grant GSHR May 25, 2022 8:20 AM

Ultrack Systems Fully Acquires California Trucking Company M-Loan Inc. MJLB May 24, 2022 9:30 AM