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A Health Care Reform Winner

By: Sam Collins
Posted: 10/24/2010 8:01:00 PM
Referenced Stocks: ABC

AmerisourceBergen Corp. (NYSE: ABC ) - This pharmaceutical services company provides drug distribution and related services.

Earnings growth of more than 32% has made ABC an institutional favorite. S&P says that ABC should benefit from health care reform and "likely will gain share in the long term." S&P maintains a "four-star buy" with a 12-month target of $36.

The stock has been in a steady bull channel supported by the 50-day moving average for over a year. It is up more than 80% since its low in March 2009, and now it appears to be getting stronger as the stochastic is turning up.

Following a consolidation within the familiar outlines of a "cup," a breakout at $33 yields a trading target of $39.

Trade of the Day - ABC Stock Chart

Trade of the Day Chart key If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net .