2 Healthcare Stocks That Could Bounce Back Next Week

Both INCY and ABMD are flashing a bullish signal

Managing Editor
Oct 12, 2018 at 2:20 PM
facebook twitter linkedin


Stocks earlier this week were clobbered, turning in their worst day in months. However, many individual stocks have flashed bullish signals in the wake of the bloodbath. If past is precedent, two healthcare names could climb into November: drugmaker Incyte Corporation (NASDAQ:INCY) and medical device maker ABIOMED, Inc. (NASDAQ:ABMD). Both names have averaged the biggest gains after S&P 500 sell-offs since 2010.

Incyte Stock Looking To Jump-Start A Rally

Incyte stock is up 0.5% to trade at $61.95 today, after shedding nearly 6% in the last two days. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, following S&P 500 drops of 3% or more in one day, Incyte stock gained 5.85% in the subsequent two weeks, on average, and was higher 78% of the time.

A move of similar proportions would erase the losses from this week's sell-off. Overall though, its been a rough year for INCY. The shares have shed 34% in 2018, with breakout attempts in the last two months curtailed by their 160-day moving average. 

Daily Stock Chart INCY

Abiomed Stock Poised To End Pullback

Looking at Abiomed, the stock gave back a combined 7% on Wednesday and Thursday.  According to White, following S&P 500 drops of 3% or more in one day, the stock gained 6.99% in the subsequent two weeks, on average, and was higher 67% of the time. That is the highest gain of the stocks we tracked.

ABMD stock snagged a record high of $459.75 on Oct. 1, but have been mired in a steep pullback since. At last check, the shares were up 3.4% to trade at $380.19, on track to snap a nine-day losing streak. If this is indeed the end of the security's short-term struggles, they have found support at their 160-day moving average. 

Daily Stock Chart ABMD

What This Election Year Means for Stocks

Ipad with I voted sticker

  


 
Special Offers from Schaeffer's Trading Partners