Stock to Sell #2 – Community Health Systems (CYH)
Community Health Systems (NYSE:CYH), which owns and operates 131 hospitals, 63 licensed home care agencies and 30 licensed hospice agencies, has been downgraded by several research analysts. On Sept. 21, S&P lowered its rating from a “hold” to a “strong sell,” saying that the stock was overvalued after advancing 65% year to date and trading above their target.
CYH has higher-than-average debt, and revenues for 2013 are expected to be at the lower end of estimates.
Technically, the stock recently fell from a resistance line at $30-$31. Its next support is at the 200-day moving average at $23.54, and if it breaks it, then the target would be the June low of $20-$21.