NEW BULLISH Plays
Hill-Rom Holdings - HRC - close: 52.36 change: +0.30
Stop Loss: 50.75
Target(s): To Be Determined
Current Gain/Loss: Unopened
Entry on June -- at $---.--
Listed on June 04, 2015
Time Frame: 8 to 12 weeks
Average Daily Volume = 335 thousand
New Positions: Yes, see below
HRC is a midcap stock that's outperforming both the big cap indices and the midcap index. The S&P 500 index is up +1.8% year to date The MDY midcap ETF is up +5%. Yet HRC is up +14.7% this year and just set a new multi-year closing high today.
HRC is in the healthcare sector. According to the company, "Hill-Rom is a leading global medical technology company with more than 7,000 employees worldwide. We partner with health care providers in more than 100 countries by focusing on patient care solutions that improve clinical and economic outcomes in five core areas: Advancing Mobility, Wound Care and Prevention, Clinical Workflow, Surgical Safety and Efficiency, and Respiratory Health. Hill-Rom's people, products, and programs work towards one mission: Every day, around the world, we enhance outcomes for patients and their caregivers."
Their most recent earnings report was May 5th. HRC announced its fiscal Q2 results with earnings up +12% to $0.64 a share. Analysts were only expecting $0.60. Revenues were up +14% to $475 million. On a constant currency basis revenues were up +21%. Estimates were at $471.7 million.
HRC President and CEO John Greisch commented on his company's quarterly results, saying, "We are pleased to report another quarter of strong revenue and adjusted earnings growth. Organic revenue growth was the strongest in three years, as our North America and Surgical/Respiratory Care businesses performed well. In addition, we launched several important new products.
Despite incremental currency headwinds, we are raising our full-year outlook, reflecting our improved operational execution."
Management lowered their Q3 guidance below estimates but they countered that by raising their full year 2015 guidance above Wall Street expectations.
The company now sees revenues growing at +10% to +11% this year.
Investors have been buying the dips in HRC for a long time. That bullish trend of higher lows has pushed the stock toward resistance in the $52.00 area. Today we saw HRC ignore the market's widespread weakness and breakout past this area. We want to hop on board if this momentum continues. Today's intraday high was $52.37. We are suggesting a trigger to open bullish positions at $52.55.
Trigger @ $52.55
- Suggested Positions -
Buy HRC stock @ $52.55
Entry disclaimer: To avoid an unfavorable entry point, we will not launch a new play if the stock gaps open more than $1.00 past our suggested entry point.