Short Report: Picking Off Healthcare Earnings Laggards

Markets continue to inch their way upward so far today. In the past week, strong earnings reports from tech sector giants like Amazon have held up some less stellar earnings news in other sectors. Healthcare stocks, in particular, have been losing steam on flagging revenues.

NewQuantified’s Top Performers are often contrarian plays, but today’s short play goes with the broader market trend of a lagging healthcare sector. Our NewsAlerts provide a great method for picking off the worst laggards from a sectoral downturn that creates short opportunities.

Envision Health Care Holdings  (EVHC) : plummets after a poor earnings report.

EVHC dropped sharply today, falling over 30% at the time of this writing, after posting disappointing earnings data Tuesday evening. This price point marks both a 52-week low and all-time life low for EVHC.

For its part, Envision insists that this quarter’s results were driven down by recent Hurricanes, coupled with the broader problem facing the health industry: flagging growth after several years of rapid expansion precipitated by the Affordable Care Act. Industry leaders, including EVHC, are searching for strategies to provide better value, given the apparent possibility of suppressed utilization rates for years to come.

Interestingly, several financial analysts highly rated by the NewsQuantified platform actually upgraded EVHC this afternoon. It fell so much that multiple analysts placed a “buy rating” with a $60+ price target, nearly double its current price.

This course of events provides a powerful example of how much profit savvy use of the NQ platform can unlock. Our users could have shorted EVHC on its disappointing earnings announcement, only to turn around and buy the potentially undervalued stock today. It’s all up to you! We give the data you need to successfully execute any news-based trading strategy.

Diverse Plays, Great Profits: All in a single news day.

Keep checking our blog for daily updates on lucrative new-based stock plays, analyst actions, and more!

We analyze news events ranging from clinical trials in the pharmaceutical industry to routine earnings releases to major geopolitical shakeups.

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A powerful news analytics platform like NewsQuantified not only makes it easy to track the news, but to quickly compare news events with key financial information. We make it simple to find strong, diverse plays in any market environment.

How are you using the news to earn market-beating profits? How would you use the news if you had access to a real-time platform like NewsQuantified  Let us know in the comments below.

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