There could be more downside for STJ from its current perch, but look for support to emerge from the stock's 160-month moving average. This long-term trendline contained the equity's pullbacks in 1998 and 2000, which means that St. Jude could catch a lift here once again. This moving average is currently rising through the $23 region.

Despite STJ's assurances about its solid fundamental position, no one seems too convinced on Wall Street. During the last two weeks of November, option traders on the International Securities Exchange (ISE) purchased nearly three puts for every call on the stock. Additionally, analysts have warned of rocky times ahead. In the month following its earnings report, STJ was hit with four price target cuts, a downgrade from S&P Equity, and a skeptical Hold initiation from Jefferies & Co.

Overall, it looks like expectations are quite low for St. Jude in the year ahead. The stock could capitalize on the Street's lukewarm attitude by maintaining its cautious approach to guidance, which allows for upside surprises in even the harshest of environments. In the meantime, look for the shares to regain their pulse after meeting up with their 160-month moving average, which could draw some skeptics off the sidelines.

Meanwhile, the shares are trading at a deep discount to their average five-year price/earnings ratio of 34.6. As of November 30, STJ's p/e ratio was a slim 14.02.

Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the video series Schaeffer's Daily Q&A on SchaeffersResearch.com.