CVS Health Corporation : The bullish impetus is not depleted
By Arnaud Le Berre
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$59.27 | $0 | $57.8 | -100% |
From a fundamental viewpoint, the stock is trading at a low level as shown by the “enterprise value/revenue” ratio at 0.65x. The P/E ratio 2013 is moderated (estimated at 15.89x in 2013). Furthermore, company's earnings for the first quarter rose 23% boosted by a higher demand for new generic drugs and a strong flu season.
Graphically, the security is up 22.6% since the 1st January. It seems able to continue this uptrend supported by 20 and 50-day moving averages and will soon test the USD 60.35 short-term resistance. We anticipate a crossing of this level, given the upward orientation of the stock in the medium and long term. Then, USD 62 level could be reach.
Investors could take a buying position at the current prices to aim USD 63. A stop loss will be positioned under the USD 58.35 pivot point.