EarningsBeats Digest

Published: Wed, 08/11/21

EarningsBeats.com Digest for August 11, 2021

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When The Top of Gap Support Should Hold

On July 20th, HCA Healthcare, Inc. (HCA) reported excellent quarterly results. Revenues came in well above expectations ($14.44 billion vs. $13.61 billion), as did EPS ($4.37 vs. $3.17). As a result, that morning HCA opened at 239.10, significantly above the July 19th close of 217.63. Over the next few weeks, HCA traded as high as 255.13, before falling more than 3% on Tuesday to close at 240.66. Patience is a virtue and it could pay off handsomely with HCA:

The only real negative on this chart is that health care providers ($DJUSHP) have been awful relative performers vs. the benchmark S&P 500. Otherwise, HCA appears to be under significant accumulation as its AD line soared off of its 52-week low in June. Throw in the excellent relative strength of HCA and it's easy to see why this recent pullback could present an excellent opportunity. I'd be concerned with a close beneath 239 or an intraday move beneath 237.50. Should 239 hold as support, which I believe it will, then the recent high close at 253.51 would be the initial price target.

Happy Trading!

Tom Bowley
Chief Market Strategist

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