Bull’s Eye Report: WebMD Health Corp. (WBMD)

The entire Internet services space looks solid, but learn why WBMD is one of the best opportunities we see right now.

   

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
WebMD Health Corp. WBMD Internet Software & Services 9.6 +105.72% $29.25
doctor with stethoscope 250x150 200x150 Bull's Eye Report: WebMD Health Corp. (WBMD)
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Why We Like The Stock:

WebMD Health Corp. (WBMD) 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) with a positive technical set-up. Stocks in the Internet Software & Services space have been flashing buy signals this week. Companies like Google (GOOG), Pandora Media (P), OpenTable (OPEN), and WBMD all have attractive technical set-ups that have not run too far, yet retain a strong positive trend.

WBMD is an interesting chart as it recently gapped up to the $34 area a couple of weeks ago. Since then, the stock pulled back down to its short-term moving averages, based, and appears to be back on the upswing. We like that WBMD did not have to “fill the gap” before finding effective support around $30.50. We also like that the stock crossed above the 5- and 10-day moving averages this morning. At current prices, we think WBMD looks like a good buy and is poised to make a run north of $34 in the near future. We would use the 50-day moving average as our stop.

We Would Be Buyers:

At the current price (~$31.57), or on a pullback to $30.

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Company Profile:

WebMD Health Corp. is a provider of health information services to consumers, physicians and other healthcare professionals, employers and health plans through its public and private online portals, mobile platforms and health-focused publications. It engages consumers, physicians and other healthcare professionals across a multi-screen experience, allowing them to enable health decisions anytime and anywhere. The online healthcare information, decision-support applications and communications services that it provides enables consumers to obtain detailed information on health and wellness topics or on a particular disease or condition, to store individual healthcare information, to assess their personal health status, to use online health and wellness trackers, tools and quizzes, to receive periodic e-mailed newsletters and alerts on topics of individual interest, to locate physicians, and to participate in online communities with peers and experts.

Stock Rating:

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.

Disclosure:

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.

WebMD Health Corp. – Last 3 Months

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 Bull's Eye Report: WebMD Health Corp. (WBMD)


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