LHC Group (LHCG)

LHC stock forecast: buy or sell

LHC stock outlook

  • LHC only changed a 0.39% after making all-time highs yesterday
  • LHC Group, Inc., a health care provider, specializes in the post-acute continuum of care primarily for Medicare beneficiaries in the United States.
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Important:
The viewpoints contained in this article are personal and not recommendations for you to buy or sell stocks. The author of this document does not know the individual conditions of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are posted for learning reasons only

LHC stock chart overview

Should I buy LHC stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is LHCG stock a buy?

In the current situation of LHC there is not any eligible buy setup. This doesn't mean LHCG will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell LHC stock?

Knowing when to sell a stock is even more difficult than knowing when to buy it. Much like when we have to buy shares, deciding when is appropiate time to sell is not a haphazard decision, and we must follow our own trading style. When selling, as well as buying, our setups are very easy to follow but are only valid for selling shares you already own, not for selling short LHC stock

A guiding principle is that you must never mantain an investment that shows a higher than expected losses at the time of the buy. The moment to sell shares always has to be ruled by the stop-loss (automatic or manual)

Is it time to sell LHC stock?

Currently, LHC stock doesn't match any of our preferred sell setups, so if you hold LHC stock and your operation is in profit probably is not time to sell now

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Analysts' recommendations to buy or sell LHC stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, just one analyst rating was published for LHC

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LHC ratings

Brokerage firmRating
Jul 1st, 2020
Benchmark Strong buy

Technical analysis

LHC shares started an uptrend in mid-March, and gained a gorgeous 81.32%. The price line shows higher peaks and higher lows, and along the way gave some entry points for those who wanted to enter. Latest pullback was in mid-June, when price bounced at $149.43. LHC broke out above $170.46 (its last top) on June 25. That breakout was a good buying opportunity

LHCG at new Highs

Yesterday, LHC hit all-time highs (ATH) again at $182.20. Stock rallied fast in the last 2 weeks, smashing new all-time highs 5 times

SMAs overview

Moving averages are indicators for traders to measure market direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Investors use supports and resistances as a way to identify price points on a chart that tend to work as obstacles, preventing the price of shares to move up or down. A support level is a level where the price may find support as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down the support, it is likely to continue declining until meeting another support level. On the contrary, resistances are where the price tends to find resistance as it rises. Likewise, this means that the price is more likely to "bounce off" at this level, and if it finally breaches this level, it will rally more easily until it meets the next resistance

Price is at all-time highs and there are not upper resistances.

The current support levels are:

  • S1: $170.46 (-5.99% below)
  • S2: $159.48 (-12.05% below)
  • S3: $149.43 (-17.59% below)
  • Bollinger bands

    The so-called Bollinger bands are a well-established technique that was created by John Bollinger. By essence, the Bollinger Bands are lines that move around a centralmoving averagediffering in distance from the bottom to the top depending on market volatility. They are usually drawn by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    The price is moving near to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a sell signal, as price can trade in these levels for many days and weeks

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that track price movements to identify when the price of a share or financial asset is overbought or oversold. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by traders

    Relative Strength Indicator broke through the overbought line yesterday, with a value of 71.58. Breaking through above the overvalued zone is not a sell signal, as stocks can be above the level of 70 for many, many weeks and may continue to gain

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    Earnings and financials

    LHC Group (LHCG) posted EPS for the fiscal 1st-quarter that slightly beat Wall St. expectations. Quarterly EPS was $0.75 per share versus $0.69. This quarterly report represents an earnings surprise of 8.7%. On the contrary, the company reported turnover for this quarter was $512.9 million in line with the market estimates.

    Same quarter last year, reported EPS was $0.98, so current EPS is a drop of -23.47%. Turnover merely moved on an annualized basis in the first-quarter, from $502.6M to $512.9M last quarter.

    LHC will host the quarterly earnings call on late next July. Forecasted EPS for this quarter is $0.80. If you hold or you are planning to buy LHC stock, you must be on your toes as the earnings reporting day usually has a higher than usual volatility, and price can soar and sink with very low liquidity and not honouring your buy/stop-loss orders. It's always good to review company's website to confirm time and details on the earnings call and the earnings report.

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