NEW DIRECTIONAL CALL PLAYS
CR Bard Inc. - BCR - close: 165.21 change: +0.94
Stop Loss: 161.60
Target(s): To Be Determined
Current Option Gain/Loss: Unopened
Average Daily Volume = 538 thousand
Entry on November -- at $---.--
Listed on November 12, 2014
Time Frame: 8 to 12 weeks
New Positions: Yes, see below
Why We Like It:
BCR is in the healthcare sector. The company makes medical supplies.
According to the company website, "C. R. Bard, Inc. is a leading multinational developer, manufacturer, and marketer of innovative, life-enhancing medical technologies in the product fields of vascular, urology, oncology, and surgical specialty. BARD markets its products and services worldwide to hospitals, individual health care professionals, extended care facilities, and alternate site facilities."
The company has been on a roll with its earnings reports. BCR has beaten Wall Street's estimates on both the top and bottom line the last four quarters in a row. The last couple of quarters have seen some pretty big beats and management has raised guidance.
BCR's most recent earnings report was October 22nd.
Wall Street expected a profit of $1.87 a share on revenues of $818.8 million. BCR said earnings rose +28% from a year ago to $2.15 a share. Revenues were up +9% to $830 million. Inside the U.S. net sales were up +13%. Management raised their Q4 EPS guidance above analysts' estimates.
The stock has been struggling to breakout past major resistance near the $150-155 range but the October earnings results launched shares of BCR higher. The last couple of weeks have seen BCR consolidating sideways under resistance near the $165.00 level. We think it's about to break out. The point & figure chart is bullish and forecasting at long-term target of $194.00.
Tonight we are suggesting a trigger to buy calls at $165.60
Trigger @ $165.60
- Suggested Positions -
Buy the 2015 Jan $170 call (BCR150117c170) current ask $2.60
Option Format: symbol-year-month-day-call-strike