Omnicell (OMCL) provides the healthcare industry with infrastructure and workflow management. And its products and services are embraced and used by hospitals, clinics and other healthcare providing entities.
The core products of Omnicell provide healthcare providers the ability to control and manage drug delivery to patients.
One of the key challenges for healthcare providers is making sure that patients get the right drugs on the right schedule.
This not only empowers providers to make patients healthier more efficiently – but it limits errors that can result in injuries and brings liability.
The virus mess wreaked havoc on healthcare providers that were inundated with virus patients at the cost of regular patients. That caused a major drop in revenue for Omnicell that now is quickly snapping back.
Revenue is now back on course with a big turn in growth for the last quarter – with more growth seen for the next reporting statement.
Omnicell Revenue Growth Source Bloomberg
I also like the set up of the stock as you can see in the chart below:
Then, the stock and the company have great scores, according my Stock Surge Indicator (SSI) system:
- Surge Score: 91/100
- % Above 52-Week Low: 133%
- MFI Reading: 68
- Sales Growth: +10%
- Triple Momentum: YES
Omnicell has been a top performing stock for several months.
Shares are up 126% over the last 12 months.
The stock finally took a break in June, and we have seen a consolidation pattern forming over the last five weeks.
Additionally, OMCL held up very well during the recent market selloff. This sign of strength in a weak market is what I like to see from leading stocks – the ones capable of making large surges.
Earnings were up 26% last quarter, and analysts expect more increases into 2022.
My entry trigger would be a move into new high ground at $154.95.
Traders can work a tight stop at $147.10 to risk just 5% on the trade.
Manhattan Associates (MANH) provides systems for distribution centers for logistical management of supply chains. Now, that sounds boring – but it is far from it. This is at the core of how companies work.
You’ve read or experienced firsthand, shortages in products that you want or need to buy right now – from cars to appliances. And the companies building or supplying these products are scrambling to manage supply chains for needed input goods and services to make and sell more.
This is what Manhattan Associates fixes for companies. It doesn’t make semiconductors – but it does make it possible to order and route those chips to make the most of their availability. And the examples of Manhattan’s services go on and on.
This company is at ground zero right now for what is needed for companies to deliver more to customers and make more revenue.
And making more revenue is what Manhattan is now doing. It got whacked in sales growth during the virus mess. But for the last reported quarter, it had a surge of recovery and advancement in sales with more coming.
Here’s how we see the trading of the stock shaping up now:
And here is how Manhattan shapes up using our SSI system:
- Surge Score: 82/100
- % Above 52-Week Low: 75.5%
- MFI Reading: 69
- Sales Growth: +2%
- Triple Momentum: YES
MANH has a very constructive setup that began forming back in February.
I thought it could break out earlier in the month, but the stock gave a little shakeout before coming right back to its highs.
This is a textbook tightening pattern I like to see.
The entry price on the breakout would be $149.70 with a stop at $137.20.
I’m looking for an initial move of about 15%, so if it takes off, consider taking partial profits near the $174 area.
Newtek Business Services
Newtek Business Services (NEWT) is an alt-financial company set up under the Small Business Investment Incentives Act of 1980. This allows the company to provide specialized finance for companies like a commercial bank – but without costly regulatory entanglements like banks endure.
And it largely avoids traditional corporate income taxes. This tax savings brings more cash for profits for shareholders – including the dividend that yields 8.0%.
The company also provides additional guidance and assistance to its borrowing company clients. It offers technology and business consulting as well as even guidance for company exit strategies as well as merger and acquisition strategies.
And the company has the ability to also take equity stakes in its clients for growth over time for its shareholders.
Here’s how the stock is set up in our charts:
And here is how the company scores using our SSI system:
- Surge Score: 93/100
- % Above 52-Week Low: 114%
- MFI Reading: 50
- Sales Growth: +120%
- Triple Momentum: YES
Newtek is a small-cap stock, which is what I prefer to trade.
Not only do these tend to be off Wall Street’s radar, but because of their small size, they are capable of making big fast moves.
NEWT broke out of a tight base in May, and shares surged 36% in just four weeks.
Shares are again consolidating, and I am waiting for a possible second wave higher.
The entry price would be $36.45 with a stop below Monday’s low at $32.55.