I have been watching the medical device sector launch upward (largely on the back of Intuitive Surgical, ISRG). As such I put two lagging but prominent stocks on radar, MDT and BSX.
MDT lagged in part by what drove ISRG; namely, that regulators have increased some barriers to entry to Robotic Surgery, which evidently dinged MDT (which acquired Mazor Robotics a few years ago). MDT is a large and diverse device company, however, and I did not view that news as overly material to its prospects.
BSX is not one I have looked into as closely. As a former customer of mine (when I worked in the real world), I know the company to a degree and have a level of confidence in it. A side note on both companies and the sector they belong to is that in my experience it was a relatively recession resistant segment of the economy (COVID-19 presented unique challenges, as elective medical procedures were postponed by COVID priorities).
Last week MDT was added and this week BSX was added, both per the Trade Log. But I completely neglected to include them in the ‘Stocks of Interest’ segment of NFTRH 613. But today, maybe a little later than I’d like let’s highlight them as potential device sector ‘catch-up’ plays.
Good old stockcharts.com is down yet again (really poor performance, guys) and so I’ll use my supposed backup, TradingView to show the daily charts.
First, here is the sector (IHI) at all-time highs and if we are going to play it straight to the TA, targeting much higher levels if the breakout above 278 holds.
Here is laggard but very prominent device stock MDT thus far holding the SMA 50 and possibly breaking a consolidation flag. The objective to make it technically bullish is to clear 102 and hold it. I am using the EMA 20 and SMA 50 as caution points on the bullish view.
BSX, which was added on Monday (ref. TL notes) is guiding the way for MDT about what to do next. If this is real, I am thinking gap fill for BSX around 46. The key is obviously to hold this breakout.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the technical parameters are already noted. These updates are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.