Donald Johnson

Cross Country Healthcare Might Be Just What the Doctor Ordered

Morningstar.com gives the stock three stars, which means it's close to M*'s fair value estimate of $14. It says consider buying the stock at $10.50 and selling at $18. The firm says: "Still, Cross Country is starting from behind. Close competitor AMN Healthcare AHS has been enjoying a cyclical upswing for two years because of better recruiting and a more focused strategy. To stem the flow of nurses to competitors, Cross Country may have to increase marketing expenses and pay rates for temps. Although this will weigh on short-term results, we believe these costs are necessary to strengthen Cross Country's recruiting abilities."

While the daily chart says sell, the weekly says buy and the bullish point and figure chart objective is $18.50 with the stock at $12.20.