Omnicell, Inc. (OMCL)

Omnicell stock forecast: buy or sell

Omnicell stock outlook

  • Omnicell stock only changed -0.86% to close at $63.15 on the stock market today.
  • The price is currently under the lower Bollinger band, which is usually an indicator of a near-term bounce that you better not try to trade
  • The stock is configuring an uptrend pattern since mid-March, when it bottomed at $54.24. Up to date, the uptrend made a 16.43% profit since the beginning of this rally
  • Omnicell, Inc., together with its subsidiaries, provides medication management automation solutions and adherence tools for healthcare systems and pharmacies worldwide.
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Disclaimer:
The comments given in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this report does not have any knowledge of the individual conditions of the reader, his or her own finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are posted for educative reasons only

Omnicell stock chart overview

Should I buy Omnicell stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. 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 OMCL stock a buy?

In the current situation of Omnicell there is not any eligible buy setup. This doesn't mean OMCL 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 Omnicell stock?

How to know when is it time to sell Omnicell?. Trading strategies help us to avoid rash decisions based on our personal feelings or the noise that surrounds the market. We like very simple setups to guide us on when is a good time to sell a stock. Be aware that these setups are not intended for selling short Omnicell stock

As a golden rule, you should never hold a trade that yields losses greater than those expected at the time of the buy. The timing to sell shares always has to be dictated by the stop-loss (automatic or manual)

Is it time to sell Omnicell stock?

In the current situation of Omnicell there is not any eligible sell setup, so Omnicell stock holders with operations in profit can keep their positions

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Analysts' recommendations to buy or sell Omnicell 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 previous month we couldn't find any rating for Omnicell

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Technical analysis

Since in mid-March, Omnicell has been drawing an uptrend that so far marked a gorgeous 16.43%. The price action shows higher highs and higher troughs, and along the way gave some entry points for those who wanted to invest. Latest pullback was in mid-June, when price bounced at $62.51. Like in all uptrends, price needs to rest and now price is moving in a range between $73.52 and $62.51

SMAs overview

A favorite tool of many traders are the moving averages, that easily show trend momentum. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

Supports and resistances

Investors use support and resistance levels to spot price points in the stock price action that may behave as barriers, containing the price of a stock to move up or down. Supports are levels where the price may stop as it falls. Price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down the support, it will probably continue declining until meeting another support level. In contrast, resistance levels are where the price tends to find resistance as it rises. In the same way, this means that the price is more liable to "rebound" at this level, and if it finally breaks this level, the price will rise more easily until it finds the next resistance

The current resistances are:

  • R1: $67.30 (6.57% above)
  • R2: $67.75 (7.28% above)
  • R3: $67.80 (7.36% above)
  • The current support levels are:

  • S1: $62.51 (-1.01% below)
  • S2: $62.40 (-1.19% below)
  • S3: $59.40 (-5.94% below)
  • Bollinger bands

    The so-called Bollinger bands are a widespread technical strategy introduced by John Bollinger. It consists of 3 lines that are drawn superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    When the price moves out of the band (above the upper line or below the lower line) it shows that the price action is currently having a very strong trend and therefore can reverse the trend to the average. For this case, the price is beneath the upper band, meaning a short-term bounce off (at least) until it is back above the band

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that gauges price changes to identify when the price of a share or financial asset is overbought or oversold. Oscillator indicators, such as relative strength, are intended 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 stock traders

    When the Relative Strength Indicator (RSI) stays for so long below 70 and above 30, without showing moments of overvaluation and undervaluation, the indicator becomes of little use, and we currently are in such a case.

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    Earnings and financials

    Omnicell, Inc. (OMCL) posted adjusted EPS for the fiscal Q1 that significantly enhanced Wall St. expectations. Quarterly EPS was $0.66 per share instead of $0.51. This quarterly report means an earnings surprise of 29.41%. Company's sales resulted of $229.7 million compared to $219.0 million forecasted by analysts.

    This compares to earnings of $0.61 per share same quarter last year, so reported EPS means an improvement of 8.2%. Revenue skyrocketed a 13.42% on an annualized basis in the first-quarter, from $202.5M to $229.7M last quarter. Omnicell made three year over year quarterly positive results, improving turnover by 26.98% from $180.9M on 2017-Q2.

    Omnicell will host the quarterly earnings call on Thursday next week. Estimated per-share earnings of %s for this quarter is $0.25. If you hold or you are looking to buy Omnicell shares, you must be on alert as the earnings reporting day usually has a very high volatility, and price can gap up or down with unsually low liquidity and not respecting your buy/stop-loss orders. Have a look company's website to confirm time and details on the earnings call and the earnings report.

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