MD (Pediatrix Medical Groud) has a good chance to take profitNYSE:MD
$MD::$15.73->44.5::280%::Aug 2023
Does not constitute a recommendation.
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MD trade ideas
MD - Momentum play long setup MD - 2 big insider buys from director at $21 with over 400% buy with $10million. Possible long if it breaks 27.03, Stop signal 25.32. Momentum play with first target at 29.83.
Mednax outrageously oversold ahead of earningsIt's not every day you see a stock get this oversold on its weekly chart. Mednax, Inc. has lost about 50% of its value over the past year due to some earnings and revenue misses and year-over-year declines. After this drop, Mednax has a very attractive P/E of 8.66. Its forward P/E of 6.84 indicates that its earnings are expected to grow. S&P Capital IQ rates the company as highly undervalued.
Mednax has recently had some analyst upgrades, which could serve as an upward catalyst. Also, with an ESP of 2.13% from Zacks, Mednax may beat analyst estimates when it next reports earnings on August 1. MedData's revenue has grown over the last several earnings reports, and earnings misses have been mostly due to administrative and interest payment costs. An ongoing share buyback program has reduced the number of shares of common stock, which means the company's profit will be divided by fewer shares on the next report.
On the other hand, Mednax managed to miss both its own forecasts and the analysts' estimates on its last report, despite its buyback program. I don't see a lot of signs that Mednax has made progress toward cutting costs and improving margins since then. References to "restructuring" in past earnings reports are vague, but they probably refer to the so-far unsuccessful effort to sell the MedData division of the company. S&P Capital IQ rates the company as highly financially healthy, but I think that's an exaggeration. As best I can tell, the company has some pretty high-interest debt and is burning through its cash reserves. Employee reviews on Glassdoor suggest that top executives may not be providing competent leadership.
These concerns aside, Mednax's undervaluation and analyst ratings make it a potentially attractive buy ahead of earnings. Even a small earnings beat could give the stock a big bump. I see some bullish divergence on the chart that suggests a slowing of its downward momentum. I'll be watching closely for signs of positive investor sentiment, with an alert set to buy at the first sign of a breakout above the parallel channel.
MEDANAX INC Investment OpportunityFromt the ATH at at $86 to the buy zone $22.3 we have about 75% retracement, there is a falling wedge formation with bullish divergence on all the indicators, we don't want it below $18 or it will drop to $12.4 but is very ver unlikely.
MD - LongMD had a nice bounce after last earnings and has since been consolidating. Good chance it soon tries to break above upper trendline.
MD breaks out on higher volumeMD was trending really well until early 2014 when there was a prolonged correction/pullback. Since then it has outperformed the S&P by some distance.
Price took it's time to comfortably clear the $64 zone, finally doing so on 29th January 2015 with an extremely large, bullish bar and higher volume. More recently, Friday's bar closed above the $70 round number (again on higher volume) so we should expect a continued move to the upside.
With earnings already announced, and a reasonably linear trend developing, MD offers a solid long opportunity.
