Brookdale Senior Living Inc. (BKD): Today's Most Compelling Stock Buy

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SoTM Bull's Eye Report - Today's Most Compelling Buy
Monday, March 25, 2013

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
Brookdale Senior Living Inc BKD Health Care Facilities 9.8 +7.05% $26.76

Why We Like The Stock:

Brookdale Senior Living Inc (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, Health Care Facilities. While BKD has pulled back from recent highs, take a look at comparable stocks in Community Health Systems (CYH), Health Management Associates (HMA), HealthSouth Corp (HLS), and LifePoint Hospitals Inc (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 fuago." 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).

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Company Profile:

Brookdale Senior Living Inc. (Brookdale) is an owner and operator of senior living communities throughout the United States. As of December 31, 2011, the Company operated in four business segments: retirement centers, assisted living, continuing care retirement communities (CCRCs) and management services. Effective January 13, 2011, the Company acquired the underlying real estate interest in 12 assisted living communities that the Company previously leased. Effective February 1, 2011, the Company acquired the underlying real estate interest in one assisted living community that the Company previously leased. Effective February 1, 2011, the Company acquired one assisted living community. Effective November 1, 2011, the Company acquired one assisted living community that the Company previously managed. On September 1, 2011, the Company acquired Horizon Bay Realty, L.L.C. (Horizon Bay). In January 2013, the Company acquired 12 communities with a total of 871 units.

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.

  Brookdale Senior Living Inc - Last 3 Months

  Brookdale Senior Living Inc - Last 12 Months

  Brookdale Senior Living Inc - Last 5 Years

 

 

The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of StateoftheMarkets.com and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Stocks should always consult an investment professional before making any investment.

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The analysis provided is based on both technical and fundamental research and is provided 'as is' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks , US Markets

Referenced Stocks: BKD , CYH , HLS , HMA , LPNT

David Moenning


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