Bristol-Myers Squibb Company BMY is breaking out and poised to trend higher, Ritholtz Wealth Management CEO Josh Brown said Thursday on CNBC's "Fast Money Halftime Report."
Brown told CNBC that he recently added the stock to his portfolio. The health care sector is the strongest sector in the market right now, he said.
Bristol-Myers Squibb has been consolidating for five years, he said, adding: "the longer the base the bigger the space."
Brown often uses this phrase to explain that stocks that consolidate for long periods of time tend to break out with more momentum than those that break out following shorter periods of consolidation.
Brown told CNBC he doesn't see any resistance for the stock until the mid to high $70s. He doesn't expect the stock to have much trouble breaking through that next resistance level, he added.
Investors get to collect a 3% dividend yield as they wait for the stock to make the move that Brown is anticipating, he noted.
"Your risk here is boredom," Brown said.
BMY Price Action: Bristol-Myers has traded as high as $67.99 and as low as $56.75 over a 52-week period. The stock was up 1.18% at $67.95 at last check.
Photo: courtesy of Bristol-Myers Squibb.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.