Our first idea today is picking up steam due to its coronavirus testing; the company just walloped analysts’ projections for its third quarter. Our second recommendation is a short that is failing technical tests.
Buy: Quest Diagnostics Incorporated (DGX)
From Shortex Market Letter
52wk H. $131.81 52wk L. 73.02
Mkt Cap: $16.94B, EPS: 8.11, P/E: 15.56,
The provider of diagnostic testing services is a beneficiary of pandemic Covid-19. Reported Q-3 earnings of $4.31/shr, up 145% vs. Q-3 a year ago, on revenue of $2.79B, up 42.5%. Forecasting earnings of $9-$10/shr on sales of $8.8B-$9.1B for the year. Reversal from the completed correction/retraction during Aug-Sept ’20. Rocketed through its 50-DMA (108-113) to (114-118) to (120-124). Gapping up (122-126) to new high of 131.81. Volatile.
BUYING RANGE: 121-130
NR TERM OBJ: 141
INTERMED OBJ: 159
STOP LOSS: 112
Joseph Parnes, Shortex Market Letter, shortex.com, 800-877-6555, October 28, 2020