WebMD Health Corp. (WBMD): Today's Most Compelling Stock Buy

By
A A A


 

SoTM Bull's Eye Report - Today's Most Compelling Buy
Monday, July 30, 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
WebMD Health Corp WBMD Internet Software & Services 9.6 +105.72% $29.25

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 Inc (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.

Looking to trade the Bull's Eye stock picks? Click here to download our free Special Report, "How We Identify Our “Bull’s Eye” Picks & How You Can Profit Trading Them"
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

  WebMD Health Corp - Last 12 Months

  WebMD Health Corp - 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.

Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.

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.

Employees and affiliates of HCM and Ridge may at times have positions in the securities referred to and may make purchases or sales of these securities while publications are in circulation. Editors will indicate whether they or HCM has a position in stocks or other securities mentioned in any publication. The disclosures will be accurate as of the time of publication and may change thereafter without notice.

Index returns are price only and do not include the reinvestment of dividends. The S&P 500 is a stock market index containing the stocks of 500 large-cap corporations, most of which are US companies. The index is the most notable of the many indices owned and maintained by Standard & Poor's, a division of McGraw-Hill. S&P 500 is used in reference not only to the index but also to the 500 companies that have their common stock included in the index.

Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.



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 , Technology

Referenced Stocks: GOOG , OPEN , P , WBMD

David Moenning


More from David Moenning:

Related Videos

Stocks

Referenced

100%
100%
62%
100%

Most Active by Volume

56,834,794
    $15.52 unch
47,736,761
  • $94.72 ▲ 0.83%
41,992,984
  • $2.47 ▲ 11.76%
40,893,734
  • $34.7901 ▲ 2.14%
39,324,803
  • $69.27 ▼ 0.19%
39,276,613
  • $7.28 ▲ 2.68%
39,084,483
  • $44.83 ▼ 0.01%
33,527,212
  • $26.02 ▲ 0.15%
As of 7/22/2014, 04:03 PM