Shortly after the bell rings, we will buy 300 shares of Bristol Myers Squibb at approximately $56.50. Following the deal, Jim Cramer's Charitable Trust will own 1,200 shares of BMY, increasing its weight in the portfolio to about 1.9% from about 1.4%. Wall Street's bad breadth streak may have finally caught up with it. The S&P Short Range Oscillator, our trusted momentum indicator, reached oversold after Friday's mixed session, falling to -4.1%. When the Oscillator becomes oversold, our discipline says it is time to be opportunistic and buy shares of quality companies. In Thursday's edition of Hometretch, we noted that Bristol Myers Squibb's recent drop to the mid-$50s looked like an opportunity, especially since it meant the stock had given back about half of its gains following the schizophrenia trial failure rival to AbbVie. drug. Jefferies analysts now share our long-term bullish view on Bristol Myers. Analysts upgraded their rating to buy from hold on Monday and raised their price target to $70 from $63. Jefferies provided three main reasons for its decision, suggesting a 25% upside over the current share price. Analysts believe Cobenfy, the drugmaker's top schizophrenia drug, is on track to become a blockbuster. They currently estimate $11 billion in peak sales of the drug, well above the current Wall Street consensus of $6 billion. Jefferies is also becoming more optimistic about the Bristol Myers pipeline. One drug that analysts highlighted was Milvexian, an anticoagulant drug currently in three late-stage trials for atrial fibrillation, acute coronary syndrome and secondary stroke prevention. The third bullish point for Jefferies was increased bottom line visibility and Bristol Myers' ability to navigate its next patent cliff, especially thanks to higher Cobenfy sales. We agree with all three reasons and believe that trading shares below 8 times estimated 2025 earnings per share with a 4.4% dividend yield is too cheap. We first purchased Bristol Myers in late November and most recently expanded our position on December 4th. (Jim Cramer's Charitable Trust has a long BMY. See here for a full list of stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable fund's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR DUTY EXISTS OR IS CREATED BY VIRTUE OF THE RECEIPT OF ANY INFORMATION PROVIDED IN RELATION TO THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR BENEFITS ARE GUARANTEED.
