New ‘Buy’ Signal for Top Health Care Stock

by Sam Collins | December 7, 2012 1:17 am

HCA Holdings (NYSE:HCA[1]) — As one of the nation’s largest health care service providers, HCA should benefit from the reelection of President Obama and his health care law. 

In October, the company reported Q3 earnings of $0.77, which were in line with analysts’ estimates. It 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 $31.47, and then at its bullish support line at just over $29. Note the buy signal from our internal indicator, the Collins-Bollinger Reversal (CBR), at about $28. 

The Trade of the Day last reviewed HCA on Nov. 8[2], at $33.85, and recommended buying the stock at $31 or lower for a trade to $36. The stock did trade below $31, and is now above $33. I’m raising the target to $38.

Note the strong MACD buy signal. Buy HCA under $32 for a trade or as a long-term, cornerstone holding in the health care industry.

12 07 12 hca 300x218 New 'Buy' Signal for Top Health Care Stock
Click to Enlarge

chart key 300x84 New 'Buy' Signal for Top Health Care Stock

Endnotes:
  1. HCA: http://studio-5.financialcontent.com/investplace/quote?Symbol=HCA
  2. Trade of the Day last reviewed HCA on Nov. 8: http://investorplace.com/2012/11/trade-of-the-day-hca-holdings-nyse-hca/

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