Today we are going to look at ABIOMED (ABMD) to see if it is a stock that we should buy, sell, or do nothing with. We will look at the 7 fundamental parameters I look to see if a stock can be considered a growth stock. Then we will take a look at the technical analysis side using the setups I have created and use for my trades. I have no plans to own ABIOMED in the next 72 hours and do not hold any positions in ABIOMED (ABMD)
Abiomed
Should you Buy or Sell ABIOMED’s stock (ABMD)?
There are 7 fundamental markers I look for in a stock. I try to only purchase growth stocks so these are the parameters I look for to see if a stock meets the majority of the markers. I prefer to have all seven fulfilled. You can it more in depth here: https://evancarthey.com/how-to-scan-for-winning-stocks-an-insiders-view-to-my-process/
- Market Cap: > $300 million
- EPS growth past 5 years: >0%
- P/E: Over 10
- EPS growth next 5 years: >0%
- Sales growth past 5 years: Over 20%
- Debt/Equity: <0.1
- Sales growth qtr over qtr: Over 5%
Does the stock meet these 7 markers?
- Market Cap: 11.09B (YES)
- EPS growth past 5 years: 51.40% (YES)
- P/E: 55.48 YES
- EPS growth next 5 years: 28.90% (YES)
- Sales growth past 5 years: 30.30% (YES)
- Debt/Equity: 0 (YES)
- Sales growth qtr over qtr: 30.30% (YES)
I used Finviz.com for the fundamental analysis screener. With ABMD hitting all 7 of the markers then this is what I consider a growth stock. These are the types of stocks I look for to trade. Before I would trade just about any stock that fit my technical parameters. Unfortunately, I have had to learn the hard way that the fundamentals of a stock are just as important (if not more) than the technical setups.
The stock market is a different beast than Forex or futures.
Technical Analysis for ABIOMED (ABMD)
ABIOMED is currently in a short setup with the target being the green line. Price is currently at $256.63 and the target is $250.88 so it looks like it has the chance of hitting it fairly soon. The other longer-term reverse lightning trade short have all been completed. The next one to trigger would be if the price breaks $219.13.
ABMD is also in a 38-127 long setup. The current exit is at $334.63, the green line. I’ll put another picture below to show where the exits will move if the price doesn’t go up and hit $334.63. If the price does go up and hit $334.63 first then the setup is over and time to look for another trade.
If price continues to move down and never hits $334.63 then the 78.6% Fib retracement is your next entry at $211.88. This would move all exits to the green line at $299.27. But if the price continues to move down further and hits the blue line at the bottom (100% Fib level) then all exits move to the pink line at $262.22. If price continues to move down further you do not have to move the exit any lower. You can if you want to but for this setup that is the last exit move.
With price currently at $257.10, this is what I call a “free trade” because with your very last exit being at $262.22 as the worst case scenario you stand to make a profit at any point below that level.
Popular Links
Here are a couple of links if you are looking at how I view the market and some trade setups. You can create your own trading style and setups. Quit paying losing traders to teach you. The only thing they teach is how to lose money.
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My Robinhood Review: https://evancarthey.com/review-robinhood-trading-service-with-no-fees-part-1/
