Do you like to trade with stocks' momentum trends? For ideas on how to use momentum data, we ran a screen you may be interested in.
We screened the healthcare sector for stocks exhibiting the technical "golden cross," in which a stock's 50-day moving average has crossed above its 200-day MA, indicating recent upside momentum that may persist.
We then screened these stocks to find those with strong profitability, by screening for those with higher gross, operating, and pretax profit margins than their industry peers over the trailing twelve months.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.
Do you think these stocks will continue moving higher? Use this list as a starting point for your own analysis.
1. DaVita, Inc. (DVA): Provides kidney dialysis services in the United States. SMA50 at $78.86, SMA200 at $77.32 (current price at $86.37). TTM gross margin at 32.02% vs. industry average at 20.99%. TTM operating margin at 15.83% vs. industry average at 8.22%. TTM pretax margin at 11.17% vs. industry average at 6.76%.
2. Hologic Inc. (HOLX): Develops, manufactures, and distributes medical imaging systems, and diagnostic and surgical products for serving the healthcare needs of women. SMA50 at $18.76, SMA200 at $18.14 (current price at $21.48). TTM gross margin at 65.56% vs. industry average at 65.23%. TTM operating margin at 17.28% vs. industry average at 13.95%. TTM pretax margin at 13.93% vs. industry average at 11.%.
3. Lifepoint Hospitals Inc. (LPNT): Operates general acute care hospitals in non-urban communities in the United States. SMA50 at $38.13, SMA200 at $37.66 (current price at $40.52). TTM gross margin at 29.55% vs. industry average at 20.99%. TTM operating margin at 10.54% vs. industry average at 8.22%. TTM pretax margin at 7.38% vs. industry average at 6.76%.
*Profitability data sourced from Fidelity, all other data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.