HCA Holdings Inc. (HCA): Today's Most Compelling Buy

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SoTM Bull's Eye Report - Today's Most Compelling Buy
Tuesday, April 9, 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
HCA Holdings Inc HCA Health Care Facilities 9.6 +19.74% $37.09

Why We Like The Stock:

HCA Holdings Inc (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, Health Care Facilities. Since August of 2012, Health Care Facilities stocks have been on quite a tear. However, HCA's competitors Universal Health Services (UHS), Tenet Healthcare Corp (THC), and Community Health Systems Inc (CYH) all look like they're 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).

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Company Profile:

HCA Holdings, Inc. (HCA) 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’s (Foundation).In December 2011, it sold Palmyra Medical Center in Albany, Ga.

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.

  HCA Holdings Inc - Last 3 Months

  HCA Holdings Inc - Last 12 Months

  HCA Holdings 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.

The information contained in our websites and StateoftheMarkets.com publications is provided by Ridge Publishing Co. Inc. (Ridge). One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.

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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 , Business

Referenced Stocks: CYH , HCA , THC , UHS

David Moenning


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