LifePoint Health Inc : Running out of steam as opportunity
By Camille Chretien
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
US$48.1 | US$0 | US$45.32 | -100% |
After few months of downward revisions in earnings per share estimates, the latter finally stabilized and are now slightly increasing. Furthermore, the company is under-valued with an EV/Sales ratio of 1.04x compared to 1.66x for the sector.
Technically, the uptrend in the medium and long term should protect the stock of a major downtrend. In the short term, a decline led the share to the USD 47.3 support, corresponding to the 100-day moving average. Therefore, a technical rebound will fix an objective near the USD 50.5 short-term resistance.
Investor should watch the security close to USD 47.3 to take advantage of a new upward acceleration in the direction of USD 50.5, then USD 53. A stop loss is placed under USD 47.3.