Fresenius Medical Care Enters Oversold Territory

Feb 26 2014, 1:07pm CST | by

The DividendRank formula at Dividend Channel ranks a coverage universe of thousands of dividend stocks, according to a proprietary formula designed to identify those stocks that combine two important characteristics — strong fundamentals and a valuation that looks inexpensive. Fresenius Medical Care (NYSE: FMS) presently has an above average rank, in the top 50% of the coverage universe, which suggests it is among the top most “interesting” ideas that merit further research by investors.

But making Fresenius Medical Care an even more interesting and timely stock to look at, is the fact that in trading on Wednesday, shares of FMS entered into oversold territory, changing hands as low as $33.45 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

Click here to find out what 9 other oversold dividend stocks you need to know about, at DividendChannel.com »

In the case of Fresenius Medical Care, the RSI reading has hit 29.6 — by comparison, the universe of dividend stocks covered by Dividend Channel currently has an average RSI of 57.7. A falling stock price — all else being equal — creates a better opportunity for dividend investors to capture a higher yield. Indeed, FMS’s recent annualized dividend of 0.480412/share works out to an annual yield of 1.41% based upon the recent $34.28 share price.

A bullish investor could look at FMS’s 29.6 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. Among the fundamental datapoints dividend investors should investigate to decide if they are bullish on FMS is its dividend history.

In general, dividends are not always predictable; but, looking at the history chart below can help in judging whether the most recent dividend is likely to continue.


Special Offer: Find out what Dave Moenning is holding in the ETF Channel Flexible Growth Investment Portfolio with a special 20% off coupon from Forbes and 30 Days Free.

Source: Forbes Business

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

NetAppVoice: "Why Can't You Be More Like A Startup?" -- How To Build A Culture Of Agility
NetAppVoice: "Why Can't You Be More Like A Startup?" -- How To Build A Culture Of Agility
Disruptive innovation and disruptive business models are increasingly fashionable. In this business environment, established businesses are often asked, “Why can’t you act more like a startup?” The sad fact is there are...
 
 
Throw Out Your Company's Mission Statement And See Your Team Soar
Throw Out Your Company's Mission Statement And See Your Team Soar
Susan came to us because her company was stuck at the $250 million revenue inflection point. Revenue had risen to $262 million but slid back down, then hovered at $251 million for a few years, and the last year had been...
 
 
'Mad Men' Ad Scan: An Legendary Creative Director Dissects Freddy Rumsen's Accutron Spot
'Mad Men' Ad Scan: An Legendary Creative Director Dissects Freddy Rumsen's Accutron Spot
For all its existential trappings, Mad Men is ultimately a workplace drama about mid-level ad agency.  And that’s the one thing that Don Draper and Friends are good: creating compelling spots To see how this year’s ads...
 
 
Four Bearish Plays For An Overpriced Market
What do you do if the market is 43% overpriced? (The 43% is explained here.) Go to cash. James Montier, bearish market strategist at money manager GMO, is only 30% invested with his own savings. That’s a bit drastic,...
 
 
 

Latest from the Network

'Mad Men' Ad Scan: An Legendary Creative Director Dissects Freddy Rumsen's Accutron Spot
For all its existential trappings, Mad Men is ultimately a workplace drama about mid-level ad agency.  And that’s the one thing that Don Draper and Friends are good: creating compelling spots To see how this year’s ads...
Read more on Business Balla
 
Four Bearish Plays For An Overpriced Market
What do you do if the market is 43% overpriced? (The 43% is explained here.) Go to cash. James Montier, bearish market strategist at money manager GMO, is only 30% invested with his own savings. That’s a bit drastic,...
Read more on Business Balla
 
Legislator Wants To Stop School Choice From Creating Pseudo All-Star Teams
New Jersey’s Interdistrict Public School Choice program allows students to transfer to other, state-approved districts to get themselves, presumably, a better education, as well as take advantage of “specialized and...
Read more on Business Balla
 
United Center Leads Dual Sport Venues With Highest Average Price for Tickets To See Blackhawks and Bulls
As the NHL and NBA playoffs are getting ready to start, arenas all over North America will be preparing to host the extra games. While these venues will enjoy the extra revenue from postseason games, three venues will...
Read more on Business Balla
 
What 'Heaven Is For Real' Has In Common With Horror Movies
The other day, a friend of mine asked why Hollywood makes so many horror movies when most of the people he knows have no desire to see them. The answer is that there is a group of people who will go see horror movies,...
Read more on Business Balla
 
Blizzard's 'Hearthstone' Arrives On iPad Worldwide
After a successful test in a few regions, Blizzard has now released its battle card game, Hearthstone, on Apple's  iPad worldwide. The game has made a splash on PC since an exceptionally popular closed and open beta,...
Read more on Business Balla
 
3 Ways Microsoft Is Rethinking Its Energy Supply
I’m mostly kidding, but maybe we should go back to calling cloud services by one of its earlier names, utility computing. After all, this whole evolution is inspiring high-tech vendors from Apple to eBay to Google to...
Read more on Business Balla
 
Why CIA Director Brennan Visited Kiev: In Ukraine The Covert War Has Begun
Ukraine is on the brink of civil war, Vladimir Putin has said, and he should know because the country is already in the midst of a covert intelligence war. Over the weekend, CIA director John Brennan travelled to Kiev,...
Read more on Business Balla
 
Local Economic Forecasts From a Global/National Perspective
Small business owners attend economic forecast presentations presented by a bank or chamber of commerce. What the business owner always wants to know is what is going to happen in the local economy, but a lot of the...
Read more on Business Balla
 
The Best Cities For Raising A Family
America's Best Cities for Raising a Family Raleigh, N.C., has built a solid economy around financial services, software and energy, a major retail shipping operation and its renowned Research Triangle. The metro area...
Read more on Business Balla
 
 
Auto Balla Sexy Balla Sport Balla TV Balla Politics Balla Movie Balla Apple Balla Business Balla Ad Balla Celebrity Balla