Bull’s Eye Report: HCA Holdings (HCA)

HCA is an intermediate- to long-term hold, but also has high upside short-term

   

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.
Stop Loss
HCA Holdings Inc HCA Health Care Facilities 9.6 +19.74% $37.09

Why We Like The Stock:

HCA Holdings (NYSE:HCA) 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 the top-rated sub-industry, healthcare facilities. Since August of 2012, healthcare facilities stocks have been on quite a tear. However, HCA’s competitors Universal Health Services (NYSE:UHS), Tenet Healthcare (NYSE:THC), and Community Health Systems (NYSE:CYH) all look like they’re in nearly parabolic uptrends.

HCA, on the other hand, has been making higher highs and higher lows since September of 2011, and pulls back often. Thus, every pullback is an opportunity for entry in this long-term uptrend until the stock proves otherwise. At current prices, HCA is sitting on its 50-day moving average after falling off of its early April highs just above $41. Though the stock looks like a good prospect for an intermediate- to long-term hold, it also has a high upside as a short-term trade. We like HCA at current prices, with a tight stop at $37.09 in case the trade doesn’t work in our favor.

We Would Be Buyers:

At the current price (~$37.70).

Company Profile:

HCA Holdings, Inc.  is a holding company whose affiliates owns and operates hospitals and related health care entities. HCA is a health care services companies in the United States. At December 31, 2011, it operated 163 hospitals, comprised of 157 general, acute care hospitals; five psychiatric hospitals, and one rehabilitation hospital. In addition, it operated 108 freestanding surgery centers. Its operations are structured into three geographically organized groups: the National, Southwest and Central Groups. At December 31, 2011, the National Group includes 64 hospitals located in Florida, South Carolina, southern Georgia, Alaska, California, Nevada, Utah and Idaho, the Southwest Group includes 46 hospitals located in Colorado, Texas, Oklahoma and the Wichita, Kansas market, and the Central Group includes 47 hospitals. During October 2011, the Company acquired the Colorado Health Foundation. In December 2011, it sold Palmyra Medical Center in Albany, Ga.

Stock Rating: 9.6

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.

HCA Holdings – Last Three Months

HCA 1 Bulls Eye Report: HCA Holdings (HCA)

HCA Holdings – Last 12 Months

HCA 2 Bulls Eye Report: HCA Holdings (HCA)

HCA Holdings – Last Five Years

HCA 3 Bulls Eye Report: HCA Holdings (HCA)

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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.


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