Goldman Sachs Says Traders Should Use Options to Load Up on These 5 ‘Strong Buy’ Blue Chips

Bristol Myers Squibb products include the following:

  • Revlimid, an oral immunomodulatory drug for the treatment of multiple myeloma
  • Opdivo for anti-cancer indications
  • Eliquis, an oral inhibitor targeted at stroke prevention in adult patients with non-valvular atrial fibrillation, and the prevention and treatment of venous thromboembolic disorders
  • Orencia for adult patients with active RA and prostate-specific antigen, as well as reducing signs and symptoms in pediatric patients with active polyarticular juvenile idiopathic arthritis
  • Sprycel for the treatment of Philadelphia chromosome-positive chronic myeloid leukemia
  • Yervoy for the treatment of patients with unresectable or metastatic melanoma
  • Abraxane, a protein-bound chemotherapy product
  • Empliciti for the treatment of multiple myeloma
  • Reblozyl for the treatment of anemia in adult patients with beta thalassemia

The implied return of the 12-month option position would be 311%, according to Goldman Sachs.

Shareholders receive a 3.52% dividend. Goldman Sachs has a price target of $89 on Bristol Myers Squibb stock. The consensus target is $74.05, and shares closed trading on Wednesday at $64.16.

Simon Property Group

Shares of this leading company have been pounded and are offering the best entry point since last year, and it is a strong idea for investors looking to play the commercial real estate subsector. Simon Property Group Inc. (NYSE: SPG) invests in real estate markets across the globe, engaging in investment, ownership, management and development of properties. The company primarily invests in regional malls, premium outlets, mills and community/lifestyle centers to create its portfolio.

Through its subsidiary partnership, Simon Property owns or has an interest in about 230 properties in the United States and Asia. The company also has a 28.9% interest in Klepierre, a European real estate investment trust with over 260 shopping centers in 13 countries.

The implied return for the 12-month call is estimated to be 250%.

Simon Property Group stock investors receive a 6.73% distribution. The $152 Goldman Sachs price target is well above the $130.21 consensus target and Wednesday’s close at $110.90.

Nike

The athletic shoe and apparel giant is hugely popular in China and across the world. Nike Inc. (NYSE: NKE) designs, develops, markets and sells athletic footwear, apparel, equipment and accessories worldwide under the Jumpman, Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks.

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