ABT posted positive returns in July for nine of the last 10 years
With independence Day Now that the second half of the year has officially started, investors are presenting their investment strategies for the second nine of 2021. The pharmaceutical industry has been in focus for the past 12 months as the ongoing Covid-19 pandemic continues to make headlines. And while the introduction of vaccines has allayed some of Wall Street’s fears, Abbott Laboratories (NYSE: ABT) is still a major player in the world of pandemic stocks. More precisely, the pharmaceutical name was given a name Emergency use authorization from the U.S. Federal Drug Administration (FDA) for their 15-minute antigen test about a year ago, which is consistent with their healthy 27.3% year-over-year lead.
It looks like Abbot Laboratories stocks have more headroom, too, according to data from Schaeffer’s senior quantitative analyst Rocky White. The stock recently appeared on the White List of Best performing stocks on the S&P 500 in July, 10 years back. In fact, the security has posted positive monthly returns nine times out of ten over that period, with an average gain of 4.8%. On the last review, stocks were up 0.3% to $ 118.41, meaning a move of a similar magnitude would bring ABT back above $ 124 by month end.
A similar pop wouldn’t take Abbott Laboratories’ stock too far from its all-time high of $ 128.54 on February 12. Also, the stock’s June rebound from $ 105 is only picking up steam, with the stock now posting its seventh gain in eight sessions and closing above the 100-day moving average for the first time since May 11 have in mind.
A change in sentiment in the option fields could give ABT additional tailwind. This corresponds to the put / call open interest ratio (SOIR) of the Schaeffer share, which is over 93% of the values from last year. This means that short term option traders are more put than usual.
In addition, the ABT premiums are currently a bargain. The security’s 16% Schaeffer’s Volatility Index (SVI) is above just 1% of its annual range values, suggesting that options traders have rarely priced in lower volatility expectations over the past 12 months.