At StateoftheMarkets.com, we strive to “own the best and ignore the rest” in our equity portfolios. Toward this end, each day we search our database for a “top stock” (a top rated company in terms of earnings strength as well as company and industry performance) that presents a strong technical “set up” and a good entry point.
In short, when our equity team is looking to add a stock to one of our portfolios, the “bull’s eye” stock shown below is generally their first choice.
|Company||Symbol||Industry||Stock Rating||YTD% Gain||S.T.
|Brookdale Senior Living||BKD||Health Care Facilities||9.8||+7.05%||$26.76|
Why We Like The Stock:
Brookdale Senior Living (NYSE:BKD) is our most compelling buy today due to the fact that it is a top rated stock (in terms of earnings strength and company/industry performance) in a scorching hot sub-industry, healthcare facilities. While BKD has pulled back from recent highs, take a look at comparable stocks in Community Health Systems (NYSE:CYH), Health Management Associates (NYSE:HMA), HealthSouth Corp. (NYSE:HLS), and LifePoint Hospitals (NASDAQ:LPNT) – all having a stellar 2013 thus far. The cause of the BKD pullback was a downgrade by an analyst from Macquarie Research. A lone opinion isn’t enough to dissuade us from good looking charts, especially when the sub-industry itself is “en fuego.” We’d take this pullback as an entry opportunity. The short-term upside to this trade is all the way up to $30, with limited downside with a stop at $26.76. We like BKD at current prices as long as it can base at $27.
We Would Be Buyers:
At the current price (~$27.30).
Brookdale Senior Living Inc. is an owner and operator of senior living communities throughout the United States operating in four business segments: retirement centers, assisted living, continuing care retirement communities (CCRCs) and management services.
Stock Rating: 9.8
The Stock Rating indicates the combined score of our proprietary Earning Strength and Company Performance models. The rating scale is 0 – 10 with 10 being the highest.
Brookdale Senior Living – Last Three Months
Brookdale Senior Living – Last 12 Months
Brookdale Senior Living – Last Five Years
At the time of publication the editor and affiliated companies own the following positions: None
Note: Positions may be bought or sold while this publication is in circulation without notice.