At www.ValuEngine.com we show that the Medical sector is 9.8% overvalued. The Medical Products industry is 4.2% overvalued. The Medical Services industry is 9.1% overvalued. The Medical Instruments industry is 4.3% overvalued. Medical Information Systems industry is 9.6% undervalued. All 10 of the stocks in today’s table have complete ValuEngine data and most have enough price data to have enough value levels, risky levels and pivots.
Boston Scientific Corporation (BSX) – has been below $10 since the week of October 30, 2009.
LeMaitre Vascular, Inc. (LMAT) – has been below $7.75 for at least five years.
Nordion Inc. (NDZ) – plunged below $10 on September 10, 2012.
Symmetry Medical, Inc. (SMA) – has only been below $10 since October 18, 2012.
Synergetics USA, Inc. (SURG) – has been below $7.50 for at least five years.
CryoLife Inc. (CRY) – has been below $10 since the week of December 19, 2008.
Merge Healthcare Inc. (MRGE) – has been below $7.25 for at least five years.
BioClinica, Inc. (BIOC) – has been below $10 for at least five years.
Epocrates, Inc. (EPOC) – has only been below $10 since October 22, 2012.
Healthways Inc. (HWAY) – has only been below $10 since November 5, 2012.
Reading the Table
OV/UN Valued – The stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine. The most overvalued stock in this table is HWAY by 300.0%. The most undervalued stock is BSX by 36.8%.
VE Rating – A “1-Engine” rating is a Strong Sell, a “2-Engine” rating is a Sell, a “3-Engine” rating is a Hold, a “4-Engine” rating is a Buy and a “5-Engine” rating is a Strong Buy. We have four buy rated stocks, five hold rated stocks, and 1 strong sell rated stock, HWAY.
Last 12-Month Return (%) – Stocks with a Red number declined by that percentage over the last twelve months. Stocks with a Black number increased by that percentage. The best performers over the past twelve months are CRY up 35.6%, BIOC up 39.0% and HWAY is up 39.5%.
Forecast 1-Year Return – Stocks with a Red number are projected to decline by that percentage over the next twelve months. Stocks with a Black number in the Table are projected to move higher by that percentage over the next twelve months. CRY is projected to decline by 25.0% while BSX is projected to gain 9.2%.
P/E Ratios – The only stocks with favorable P/E ratios are BSX and NDZ.
Value Level: is the price at which to enter a GTC Limit Order to buy on weakness. The letters mean; W-Weekly, M-Monthly, Q-Quarterly, S-Semiannual and A- Annual.
Pivot: A level between a value level and risky level that should be a magnet during the time frame noted.
Risky Level: is the price at which to enter a GTC Limit Order to sell on strength.
Where to Buy and Where to Sell
A “Value Level” is a price at which buyers should add to positions on market price weakness. A “Risky Level” is a price at which sellers should reduce holdings on market price gains. A "Pivot" is a support or resistance (Value Level or Risky Level) that was violated in its time horizon, acting as a magnet during the remainder of that time horizon. These levels are calculated in weekly (W), monthly (M), quarterly (Q), semiannual (S) and annual (A) time horizons, based on the past nine closes in each time horizon. My theory is that the closes over a nine-year period are the summation of all bullish and bearish events for that market or specific stock. These levels are the most important element of my Buy and Trade Strategy.
Buy and Trade Guidelines
Investors should consider entering good until cancelled (GTC) orders to buy weakness to a value level, or to sell strength to a risky level.
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