We're increasing our position in a stock that just received major support on Wall Street

Shortly after the bell opens, we will purchase 300 shares of Bristol Myers Squibb for approximately $56.50. After trading, Jim Cramer's Charitable Trust will own 1,200 shares of BMY, increasing its weighting in the portfolio from about 1.4% to about 1.9%. Wall Street's poor breadth may have finally caught up with them. The S&P Short Range Oscillator, our trusted momentum indicator, was oversold after Friday's mixed session, falling to minus 4.1%. According to our discipline, when the oscillator is oversold, it is time to be opportunistic and buy stocks in quality companies. In Thursday's Hometretch, we pointed out that Bristol Myers Squibb's recent plunge into the mid-$50s seemed like an opportunity, especially since the stock lost about half of its gains from the failed attempt against AbbVies Rival schizophrenia had again dispensed medication. Analysts at Jefferies now share our bullish long-term view on Bristol Myers. Analysts on Monday upgraded their rating to “Buy” from “Hold” and raised their price target to $70 from $63. Jefferies cited three main reasons for its decision, which suggest an upside of 25% over the current share price. Analysts believe the drugmaker's top schizophrenia drug, Cobenfy, is on track to become a major blockbuster. They currently expect the drug to achieve peak sales of $11 billion, well above the current Wall Street consensus of $6 billion. Jefferies is also increasingly bullish on Bristol Myers' pipeline. One drug the analysts highlighted was Milvexian, a blood-thinning drug currently in three advanced trials for the treatment of atrial fibrillation, acute coronary syndrome and secondary stroke prevention. Jefferies' third bullish point was improved profit and loss visibility and Bristol Myers' ability to handle the impending patent crisis, particularly due to higher Cobenfy sales. We agree with all three reasons and believe the stock is too cheap to trade at less than 8 times estimated 2025 EPS with a dividend yield of 4.4%. We first purchased Bristol Myers in late November and last added to our position on December 4th. (Jim Cramer's Charitable Trust is long BMY. See a full list of stocks here.) As a subscriber to CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable foundation's portfolio. If Jim discussed a stock on CNBC television, he waits 72 hours after the trade alert is issued before executing the trade. THE INVESTING CLUB INFORMATION SET FORTH ABOVE IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, ALONG WITH OUR DISCLAIMER. THERE ARE NO fiduciary duty or duty IN RECEIVING YOUR INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.