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CNBC
6 days ago
- Business
- CNBC
Apple shares are at an inflection point, says StockBrockers.com's Jessica Inskip
Apple is underperforming the rest of the "Magnificent 7," but the technicals show it is at an inflection point, said Jessica Inskip, director of investor research at Apple was one of three names Inskip discussed during the " Three Stock Lunch " segment on CNBC's " Power Lunch " Monday. Apple Shares of the tech giant, which are down more than 20% year to date, have the potential to move higher, according to the charts, Inskip said. "There is a very, very strong resistance support zone where we're in right now -- thus the inflection point, which is around 195 to 200," she said. "We're sitting in there." The highs of the range goes to around 260, she noted. "This is an inflection to go higher because we're at the bottom," she added. AAPL YTD mountain Apple year to date However, Inskip would protect herself with an options trade called a wheel strategy, which will capture some premium in case she is wrong. "We sell a put to buy the stock. It creates neutrality in the short term, but then bullishness on the long term," she said. "We'll do that while we're at the bottom end. If we're assigned and we're wrong, we'll sell a call." Nasdaq Nasdaq should benefit from the move to 24-hour trading , seven days a week, Inskip said. The around-the-clock trading doesn't mean people staying up late in the United States, but more global access to the markets, she explained. That means the markets will need more liquidity, she said. "The way to truly hedge is utilizing options, which means that's next," Inskip said. NDAQ YTD mountain Nasdaq year to date All that new activity is beneficial to Nasdaq, she explained. "They generate off of a lot of trades. We have more trades if they start listing the options," she said. "We need that in order to hedge properly. So there's more activity." UnitedHealth Investors should be careful with UnitedHealth , Inskip said. UnitedHealth wound up on her radar when the stock landed in the Schwab Trading Activity Index (STAX), which is an index of the firm's most actively traded securities. "UNH came up with this buy the dip mentality," she said. "From a technical perspective, UNH is in a bearish trading cycle. It is finding support based on levels, so far, even before Covid," she added. "If there is some support that's there, I expect some rallying to at least the 240 level." However, she is not a bull and is warning retail traders to watch out. "Just like GME, we're buying something because we think it's low, buying the dip without any real conviction of earnings follow-through and I don't see that," he said. UnitedHealth shares are down more than 39% year to date.
CNBC
01-05-2025
- Business
- CNBC
These two health-care names work in a 'difficult' market, says MAI Capital Management strategist
In this volatile environment, there could be big opportunities in two health-care names, according to Chris Grisanti, MAI Capital Management's chief market strategist. Stocks have been rocky amid fears about President Donald Trump' s high-tariff policy and the economy. On Thursday, equities moved up again after investors reacted to strong earnings from two tech titans, Meta Platforms and Microsoft , out after the bell Wednesday. Grisanti said his health-care plays will work best "when the market gets more difficult again." He gave his two buys, and one name he's avoiding, during the " Three Stock Lunch " segment on CNBC's " Power Lunch " Tuesday. AbbVie The global biopharmaceutical company has done a great job of replacing its blockbuster anti-inflammatory drug Humira, which has faced declining sales since it lost patent protection in 2023, Grisanti said. AbbVie now has two new drugs, Skyrizi and Rinvoq. The company posted first-quarter earnings and revenue last week that topped Street expectations. It also raised its full-year earnings-per-share guidance. AbbVie also announced in February it will invest at least $10 billion in manufacturing in the United States, including four new plants. "They've got a great management [team] there," Grisanti said. "They're mixing up the product line and so that should be real strong." ABBV YTD mountain AbbVie While shares have moved higher in recent days, they still have "a ways to go," he said. The stock lost nearly 7% in April. It is up more than 9% year to date and has a dividend yield of 3.36% UnitedHealth UnitedHealth Group is currently "in the penalty box, for good reason," Grisanti said. Shares have been pummeled since mid-April, when the health-care provider cut its annual profit forecast due to higher-than-expected medical costs. The stock hit a 52-week low on Thursday and is down more than 20% year to date. It has a 2.04% dividend yield. "This is a very rare chance to get this stock, which has great management, terrific 20-year growth profile, at a cheap valuation," Grisanti said. Booking Holdings The last name on Grisanti's list is one that he would not recommend right now: Booking Holdings . The online travel booking provider beat on both the top and bottom lines when it reported first-quarter results on Tuesday. Its gross bookings narrowly topped expectations. However, tariffs are going to start hitting corporate earnings this summer, Grisanti said. "Travel is about the most discretionary category we have," he said. "It's a great company, but I don't want to be owning it if we're sliding towards a recession." Shares are up 3% so far this year.
