- Since its earnings report, it has broken out from the healthcare sector in the broad market.
- Trading above its 50- and 200-day averages.
- Issued guidance that full-year results will be close to original estimates from the end of 2019, even with the effects of COVID-19.
A hospital bed is a parked taxi with the meter running. – Groucho Marx
“Pfizer’s COVID vaccine news sent its stock price soaring, but it really wasn’t able to lift the healthcare sector with it. COVID-related gains could be limited mostly to the biotech sector as the rest of healthcare is still facing some political uncertainty,” as explained by our subscription service, The Lead-Lag Report, but Select Medical Holdings Corporation is an exception to that theory. SEM is a healthcare company that owns and operates critical illness recovery hospital, rehabilitation hospitals, and outpatient rehabilitation clinics across 46 states. The stock has been trading at a strong position for the past 100 days. It has outperformed the broad market and its sector, as based on the S&P 500 Index and the Health Care Select Sector SPDR ETF.The stock is trading above its 50- and 200-day moving averages. While the 50-day average has been positively sloped since August, which makes the technical position even stronger, the 200-day average recently turned upward over the past 30 days. The stock is in an accumulation phase, as shown by the accumulation on up days versus down days.
