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In April, commodity stocks led the market. But a few other industries also have made big strides and go into May with positive momentum. Three in particular are worth a look because they are now in the top 40 of IBD’s 197 industry rankings. The hospitals industry subgroup has rallied about 5% in April and ranked No. 4 in Friday’s edition, a huge surge from No. 156 just three weeks earlier, although Lifepoint Health ‘s ( LPNT ) plunge on an earnings miss hurt the group Friday. Is everyone getting sicker? In a sense, yes, or at least they are going to hospitals more. Universal Health Services ( UHS ) beat profit views Wednesday, citing a 12% rise in revenue at its acute-care hospitals in Q1 vs. the year-ago period. Patient admissions climbed 7.8% and what it calls adjusted patient days increased 3.5%. Hospital admissions in general have increased partly due to ObamaCare, which has increased the number of people with coverage. Universal Health is forming the right side of a long base. Other stocks in the group are deeper into price consolidations. Truck companies were up about 10% in April and rank No. 20 in Friday’s IBD. Last month’s quarterly results from Paccar ( PCAR ) and Oshkosh ( OSK ) catapulted the group. On Thursday, Oshkosh soared 13% after the truck manufacturer beat earnings expectations and raised its 2016 profit forecast. Oshkosh said its military truck business surpassed management’s expectations. Also, a “solid construction outlook” and a relatively mild winter led some truck-rental companies to make purchases earlier in the year than previously planned, boosting that segment. Paccar — which makes Peterbilt, Kenworth and other heavy trucks — issued a smaller drop in EPS (-7% to 99 cents) than thought Tuesday, sending its shares up 5%. The industry’s advance actually started in January, as it tracked the general market’s rebound. Earnings from Cummins ( CMI ) in January helped spark the rebound. The three stocks are forming the right side of patterns; no clear buy points show up on their charts yet. Mining and construction machinery companies were No. 14 in Friday’s rankings, as the group vaulted nearly 6% in April. Of only a half-dozen stocks in the group, Astec Industries ( ASTE ) is worth a look as shares find support in a pullback to the 10-week moving average. That support came thanks to the company’s earnings report Tuesday. Astec makes equipment for building, paving and mining. It missed sales estimates but beat profit views. No doubt, the construction machinery group has benefited from the rebound in metal commodities, but another factor is increased U.S. federal funding for roads and bridges. Scalper1 News
Scalper1 News