HCA Holdings (NYSE:HCA) — As one of the nation’s largest health care service providers, HCA should benefit from the re-election of President Obama and his Affordable Care Act.
The company recently reported Q3 earnings of $0.78 per share, which was in line with analysts’ estimates. HCA is expected to earn $3.49 in 2012, $3.72 in 2013, and $3.86 in 2014, according to Credit Suisse.
Technically, HCA is in a long-term bull channel with support at its 50-day moving average at $30.87, and then at its bullish support line at just over $28. Note the buy signal from our internal indicator, the Collins-Bollinger Reversal (CBR), at about $28.
On a day when the market was down more than 300 points, HCA rose almost $3. Neither investors nor traders should chase the stock, since pops like this are often followed by profit-taking. Buy HCA at $31 or lower for a trade to $36, or as a long-term cornerstone holding in the health care industry.