AbbVie, Cigna and Other Health Care Stocks With Recent Golden Crosses

Health and Healthcare

Published: November 18, 2019 7:45 am

Last Updated: January 30, 2020 1:03 pm

Golden crosses and death crosses are common signals in technical analysis and refer to the relationship between short-term and long-term moving averages. The golden cross typically is seen as a bullish sign, perhaps a stock that has broken out or is about to. The death cross, on the other hand, can be a bearish sign, perhaps warning investors to get out of the way or signaling that it may be time short the stock.

Here are five health-care-related stocks that recently saw their 50-day moving average cross above the 200-day average, a golden cross.

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AbbVie Inc. (NYSE: ABBV) saw its golden cross about a week ago, the first in more than two years. This remains a popular baby boomer retirement stock pick. Shares climbed about 16% in the past month, though they are trading in the same neighborhood as at the beginning of the year. Analysts on average recommend buying shares.

Agile Therapeutics Inc.’s (NASDAQ: AGRX) short-term moving average crossed above the long-term one last week, reversing the death cross seen in late September. The stock surged after a positive FDA reaction to the company’s Twirla contraceptive patch. Despite pulling back some late last week, the shares are still up more than 25% in the past month, while the S&P 500 has gained less than 5% in that time. Analysts overall recommend buying shares.

The rise in the Cardinal Health Inc. (NYSE: CAH) short-term moving average began in earnest in mid-October, and the gap between the two moving averages is up to almost 3% of the share price. Earlier this month, Cardinal Health agreed to pay more than $5 million related to opioid crisis claims. Shares are up about 9% from this time a month ago. Still, the consensus recommendation is to hold shares and has been for months.

Cigna Corp. (NYSE: CI) saw a golden cross last week as well. The long-term average dropped below the other back in February. The stock has seen some analysts raise their price targets recently, and it is a top Merrill Lynch pick for 2020. Shares are currently up more than 17% in the past 30 days, and most of the analysts surveyed recommend buying shares.

Immunomedics Inc.’s (NASDAQ: IMMU) golden cross happened earlier this month, and the difference in the two averages is up to about 46 cents, or more than 2% of the share price, so far. The company posted a larger than expected third-quarter net loss late last month. Yet, its shares are up more than 13% in the past month and about 17% year to date. The consensus recommendation (of only three analysts) is to buy the shares.