Shares of health-care company Regeneron Pharmaceuticals (NASDAQ:REGN) are right around oversold territory with the stock trading at a relative strength index (RSI) of 30. RSI is a momentum indicator and can be helpful to investors in identifying a stock that's been rising too quickly or falling too rapidly.
It looks at a stock's prices over the past 14 trading days and when there's been an excess of gains, the RSI number gets higher, and the reverse happens when the losses have significantly outpaced the gains. When the RSI is at around 30 or lower, it's considered to be oversold.
Regeneron stock also made a very bearish crossover recently, with its 50-day moving average (MA) falling below its 200-day MA. This can lead to more selling especially as it pops up on the radar of technical analysts who monitor price movement. On Friday, shares of Regeneron fell to $492.45 – the last time it was trading at around those levels was in late March/early April.
It's a bit of a surprise that the stock's been struggling, especially since on Nov. 21 it announced that the Food and Drug Administration approved its antibody cocktail to treat mild to moderate cases of COVID-19. This is the REGEN-COV2 cocktail that President Trump took earlier this year when he contracted COVID-19.
But with vaccine stocks being the big news of late, it's likely Regeneron's simply fallen out of favor with investors as they look to try and cash in on the vaccine market.
Trading at just 18 times it earnings, Regeneron could be attractive buy today.
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