WebMD Health Corp. : The bullish trend could take a break
Entry price | Target | Stop-loss | Potential |
---|
US$51.74 |
US$0 |
US$54.5 |
+100% |
---|
WebMD Health is following a bullish trend in the short term but a consolidation phase could begin.
The economic and financial situation of the company is still strong. Estimated sales from Thomson Reuters consensus are encouraging. Debt is decreasing rapidly and the leverage is reducing at 1.51. However, with a P/E ratio at 44.9 times 2015 estimates, the company seems overvalued compared to its peers.
Technically, the security is in an uptrend on all time scales and it is supported by moving averages. Nonetheless, the bullish trend could be stopped by the USD 52.05 resistance, and a return towards USD 45.8 can be anticipated.
For reasons above exposed, investors should sell WebMD Health at the current price targeting a return to USD 45.8. Nevertheless, a stop-loss will be placed above the entry points in case of further acceleration.
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