Stop Arguing About Obamacare — Profit From It Instead

Another way WageWorks is growing is by rolling up smaller benefits-management companies under its umbrella. This goal of this acquisition strategy is to obtain one to three smaller companies a year. These purchases result in WageWorks quickly ramping up its client base, hence revenues. It supercharges an already Obamacare-fueled growth path.

It’s far from too late to benefit from WageWorks’ momentum. In fact, this is the perfect time to buy. Shares have pulled back from highs close to $57 to near the 50-day simple moving average in the $46 range. Shares have consequently bounced higher, setting up an ideal technical buy situation. Look for shares in the technical value buy zone of $47 to $50.

Risks to Consider: WageWorks trades at a high multiple of expected 2014 estimated earnings, so it’s far from an inexpensive stock. However, the expected growth path is steep, which will likely mitigate this fact. In addition, unforeseen changes in the Obamacare legislation could hamper the expected growth path. All stock investing involves risk. Always use stop-loss orders and diversify when investing.

Action to Take –> Buying now in the technical value buy zone makes good sense. Stops should be at $45 with a 12-month profit target of $65.

This article was originally written by David Goodboy and posted on StreetAuthority.

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