Medical Companies Segment Shows Strong Performance with +3.53% Weekly Growth
The medical companies segment has experienced a notable increase in performance, recording a weekly gain of +3.53%. This sector encompasses companies involved in the production and supply of pharmaceuticals and essential medical products, catering to a broad spectrum of healthcare needs. Their product offerings include surgical apparel, gloves, hospital furniture, fluid management solutions, and specialized equipment for cosmetic and surgical procedures. Key players within this sector include Cardinal Health, Hill-Rom Holdings, and Apyx Medical, each contributing to this segment’s impressive growth trajectory.
Market Capitalization in the Medical Segment
The average market capitalization across this group of medical companies stands at an impressive $26.8 billion. The companies within this segment vary widely in size, with market capitalizations ranging from $2.7 billion to a high of $53.2 billion. Welltower Inc. (WELL) is the largest player in the group, with a valuation of $53.2 billion, while Inari Medical (NARI) has the smallest market cap, standing at $2.7 billion. This diversity in market cap reflects the varying scales of companies in the sector, from large established firms to more specialized, smaller enterprises.
Price Growth Analysis
Over the past week, the average price growth across the segment’s stocks was 3.53%. When observed over a monthly period, the price growth averaged out at 0.7%, while the quarterly price growth demonstrated a more substantial increase of 15.09%. The weekly growth highlights some notable outperformers within the group:
- Molina Healthcare (MOH): This stock showed an outstanding weekly price growth of +11.79%.
- Cardinal Health (CAH): CAH also had a positive week, recording a +6.69% increase in price, reaching $103.39.
- Inari Medical (NARI): NARI experienced a significant price jump of +9.15%, reflecting strong investor interest.
Conversely, Cardinal Health, despite being among the weekly gainers, did have a minimal fall of 0.21% over a longer monthly period, signaling some volatility within the broader uptrend.
Notable Price Movement Announcements
- August 2, 2024: Cardinal Health (CAH) marked a +6.69% weekly price increase, solidifying its position as a top gainer in the segment.
- July 26, 2024: Molina Healthcare (MOH) posted an impressive weekly gain of +12.66%, reflecting strong investor confidence.
- July 2, 2024: Inari Medical (NARI) also achieved a +9.15% weekly gain, further bolstering the overall segment's performance.
Volume Trends in the Medical Segment
Examining volume trends offers additional insight into investor activity within this sector. The average weekly volume growth across the segment declined by -11.53%, indicating some moderation in trading activity. However, this trend changes over a longer timeframe, with the average monthly volume growth surging by 104.57% and quarterly volume growth increasing by 59.5%. This spike in volume over the past quarter suggests heightened investor interest, potentially driven by favorable developments or an optimistic outlook for the sector.
Key Volume Movement Announcements:
- September 21, 2024: Welltower Inc. (WELL) saw a remarkable single-day volume increase, hitting 215% of its 65-day volume moving average.
- June 1, 2024: Molina Healthcare (MOH) experienced three consecutive days of elevated trading volume, achieving a peak of 226% above its 65-day volume moving average.
- March 29, 2024: Inari Medical (NARI) had an impressive surge in trading volume, reaching 824% above its 65-day volume moving average for a single day.
These substantial increases in volume may suggest significant investor actions, such as institutional buys or elevated market interest following major announcements or earnings reports.
Technical Indicators: Positive Momentum and Buy Signals
Several technical indicators suggest potential upward movement in key stocks within the segment, providing signals for potential buying opportunities.
1. Molina Healthcare (MOH) Breaks Lower Bollinger Band
On October 17, 2024, Molina Healthcare's stock dipped below its lower Bollinger Band, a technical indicator that often signals an upward correction. Historically, in 27 out of 32 instances when MOH's price broke its lower Bollinger Band, the stock price rose in the following month. With an 84% probability of an upward trend, this pattern suggests that MOH may see positive price action soon, potentially making it an attractive candidate for traders considering buying the stock or exploring call options.
2. Momentum Indicator Turns Positive for Welltower (WELL)
Welltower's Momentum Indicator moved above zero on October 15, 2024, signaling a possible new upward trend. This shift in momentum is typically an early indicator of positive price movement. Analyzing 86 previous instances where this indicator turned positive, the stock rose in 60 cases, giving a 70% likelihood of continued upward movement. Investors may see this as an opportunity to buy WELL shares or purchase call options, riding the potential bullish momentum.
3. Stochastic Oscillator Signals Potential Decline for Inari Medical (NARI)
On October 18, 2024, the Stochastic Oscillator for Inari Medical moved out of the overbought zone, signaling a possible bearish outlook. Historical data suggests that in 43 out of 54 similar instances, NARI's stock price declined following the exit from the overbought zone, indicating an 80% chance of a downward trend. This technical signal may prompt investors to adopt a defensive stance or consider selling NARI, as there’s a high probability of a short-term pullback.
Summary
The medical companies segment has shown robust performance, with an average weekly price gain of +3.53% and significant quarterly price growth of 15.09%. Companies within this sector, such as Cardinal Health, Molina Healthcare, and Inari Medical, have been at the forefront of this growth, benefiting from strong demand for medical supplies and healthcare services. As investors analyze this sector, they are likely to consider both price and volume trends, along with technical indicators, to identify optimal entry and exit points for these stocks.
Molina Healthcare and Welltower currently exhibit positive momentum signals, suggesting potential buy opportunities, while Inari Medical’s technical indicators signal a possible retracement. With an average market capitalization of $26.8 billion and high trading volumes, this segment presents a dynamic environment for investors looking to gain exposure to the medical supply and healthcare industry.
NARI in +0.06% Uptrend, rising for three consecutive days on February 13, 2025
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where NARI advanced for three days, in of 298 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Aroon Indicator entered an Uptrend today. In of 203 cases where NARI Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NARI declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. NARI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.886) is normal, around the industry mean (23.448). NARI has a moderately high P/E Ratio (344.828) as compared to the industry average of (83.627). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (5.667). Dividend Yield (0.000) settles around the average of (0.019) among similar stocks. P/S Ratio (5.429) is also within normal values, averaging (41.230).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. NARI’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock worse than average.
Notable companies
Industry description
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a medical device company which develops, manufactures, markets and sells devices for the interventional treatment of venous diseases
Industry MedicalSpecialties