Summary
- HCA Healthcare shows strong technical indicators with 100% buy signals, a 15.65% gain since 7/24, and 20 new highs in the last month.
- The company operates a wide range of healthcare facilities and services, with a market cap of $103 billion and a P/E ratio of 19.15.
- Analysts provide strong support with 15 strong buy ratings and price targets ranging from $316 to $445, highlighting consistent patient volume growth.
- Despite MorningStar's below-average rating, HCA's long-term strategies have yielded positive results, making it a compelling option for momentum-oriented investors.
The Chart of the Day belongs to the healthcare facilities company HCA Healthcare (HCA). I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 7/24 the stock gained 15.65%.
HCA Healthcare, Inc., through its subsidiaries, owns and operates hospitals and related healthcare entities in the United States. It operates general and acute care hospitals that offers medical and surgical services, including inpatient care, intensive care, cardiac care, diagnostic, and emergency services; and outpatient services, such as outpatient surgery, laboratory, radiology, respiratory therapy, cardiology, and physical therapy. The company also operates outpatient health care facilities consisting of freestanding ambulatory surgery centers, freestanding emergency care facilities, urgent care facilities, walk-in clinics, diagnostic and imaging centers, rehabilitation and physical therapy centers, radiation and oncology therapy centers, physician practices, and various other facilities. In addition, it operates behavioral hospitals, which provide therapeutic programs comprising child, adolescent and adult psychiatric care, adolescent and adult alcohol, drug abuse treatment, and counseling services. The company was formerly known as HCA Holdings, Inc. HCA Healthcare, Inc. was founded in 1968 and is headquartered in Nashville, Tennessee.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 54.97+ Weighted Alpha
- .81 - 60 month Beta
- 45.03% gain in the last year
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 20 new highs and up 13.58% in the last month
- Relative Strength Index 82.17%
- Technical support level at $393.42
- Recently traded at $397.75 with 50 day moving average of $353.34
Fundamental Factors:
- Market Cap $103 billion
- P/E 19.15
- Dividend yield .46%
- Revenue expected to grow 9.10% this year and another 5.70% next year
- Earnings are estimated to increase 20.90% this year, an additional 9.80% next year and continue to compound at an annual rate of 11.43% for the next 5 years
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analyst gave 15 strong buy, 4 buy and 6 hold opinions on the stock
- Analysts' price targets are between $316 and $445 with a consensus of $399
- Value Line give the stock its highest rating of 1 and has price targets between $325 and $517 with a mid-point of $421 and comments:" Momentum-oriented investors may find these shares interesting. "
- CFRAs MarketScope rates the stock a 4 star buy with a price target of $430 and comments: "We see clearer signs of consistent patient volume growth and margin support from better staffing and containment of labor cost growth. "
- MorningStar rates the stock a below average 2 star rating with Fair Value at $316 or 24% over valued but comments:" HCA's strategies have generally yielded positive results over the long run, including market share gains and some of the most efficient and profitable operations in the industry."
- 24,690 investors monitor the stock on Seeking Alpha
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
