Technicalspeculator.com’s Trade-of-the-Week: Cross Country Healthcare (CCRN)

By Tech_Spec
22-November-2019 4:57:18 PM
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This week’s trade is a technical trade. The current fundamentals are not that promising. however, the market sees some upside as the stock has broken out of a 16-month base. On the plus side, CCRN is in a promising sector – healthcare. We are therefore limiting the upside target to 14% to 15% gain.

Company profile: Cross Country Healthcare, Inc. provides healthcare staffing, recruiting, and workforce solutions in the United States. The company operates in three segments: Nurse and Allied Staffing, Physician Staffing, and Other Human Capital Management Services. The Nurse and Allied Staffing segment offers traditional staffing, including temporary and permanent placement of travel nurses and allied professionals, branch-based local nurses, and allied staffing; short-term staffing of registered nurses, licensed practical nurses, certified nurse assistants, practitioners, pharmacists, and other allied professionals on per diem and short-term assignments; and travel allied professionals on long-term contract assignments. It serves public and private acute care and non-acute care hospitals, government facilities, public and charter schools, outpatient clinics, ambulatory care facilities, physician practice groups, retailers, and other healthcare providers under the Cross Country Staffing, Mediscan, and DirectEd brands. The Physician Staffing segment provides physicians in various specialties, certified registered nurse anesthetists, nurse practitioners, and physician assistants under the Medical Doctor Associates brand as independent contractors on temporary assignments at various healthcare facilities, such as acute and non-acute care facilities, medical group practices, government facilities, and managed care organizations. The Other Human Capital Management Services segment offers retained and contingent search services for physicians, healthcare executives, nurses, advanced practice, and allied health professionals. Cross Country Healthcare, Inc. was founded in 1996 and is headquartered in Boca Raton, Florida.

Fundamentals:

Trailing P/E: N/A, Forward P/E: 54.40

EPS: -2.06, PEG: 6.53, Beta: 1.72

P/S: 0.50, P/B: 2.45

ROA: 0.86%, ROE: -35.91%

Qrtly revenue growth: -0.90%

Current ratio: 1.99

Additional fundamental data: https://finance.yahoo.com/quote/CCRN/key-statistics?p=CCRN

Technicals:

Recently broke out of a 16-month base, New 52-week high

Buying momentum is rising and positive, Buying volume is neutral

1st support level is $10.00, The safety stop is at $9.25

The target is $12.45

Suggested buying approach: As the fundamentals are not accommodating, we suggest buying a half position now. Once CCRN trades over $11.25, consider adding to the position. Always use a 3% trailing stop.

 

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Author: Tech_Spec

Canada’s only Master of Financial Technical Analysis (MFTA). This 4 – 5 year program offered by the International Federation of Technical Analysts (IFTA) in England is regarded as the global standard. • Instructor of Technical Analysis for the Canadian Securities Institute (CSI). My role is teaching market analysis to industry professionals. • Financial Technical Analyst offering 25 years experience in the financial and investment service industry. • Editor and owner of the Technicalspeculator.com, an on-line independent financial market research and newsletter website. • Registered Securities Advisor

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