Ramsay Health Care Limited (ASX:RHC) HEFFX Highlights

Ramsay Health Care Limited (ASX:RHC) HEFFX Highlights

Ramsay Health Care Limited (ASX:RHC) HEFFX Highlights

  • Based on the latest analyst predictions Ramsay Health Care Limited (ASX:RHC) is estimated to grow its earnings 16.6% over the next year. Are you considering investing? Then keep reading. In this article we will look at the latest data and analyse the future performance of this growth stock in more detail.
  • Analysts covering RHC are expecting a 42.9% increase in earnings in the three year’s time. This means that earnings per share are to rise to $3.49 levels.
  • This means earnings will be above what has been seen in the past few years.
  • During the same time we will see the revenue grow from $8.83 Billion to $10.44 Billion in 2020 and profits (net income) are predicted to rise from $481 Million to $734 Million in 2020, roughly growing 1.5x. Margins are expected to be not high but still acceptable at 7% during this time as well.

Ramsay Health Care Limited is an operator of hospitals. The Company operates approximately 223 hospitals and day surgery facilities across Australia, the United Kingdom, France, Indonesia, Malaysia and Italy. The Company’s segments are Asia Pacific, UK and France. The Company’s facilities cater for a range of healthcare needs from day surgery procedures to complex surgery, as well as psychiatric care and rehabilitation. In Australia, the Company operates approximately 70 hospitals and day surgery units. In the United Kingdom, the Company provides independent hospital services in England, with a network of over 35 acute hospitals and day procedure centers providing a range of clinical specialties to private and self-insured patients, as well as to patients referred by the National Health Service (NHS). In the United Kingdom, it also operates a diagnostic imaging service and provides neurological services through its over three neuro-rehabilitation facilities.

Overall, the bias in prices is: Upwards.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

The projected upper bound is: 75.82.

The projected lower bound is: 70.97.

The projected closing price is: 73.39.

RAMSAY FPO closed up 0.090 at 73.330. Volume was 49% below average (consolidating)(neutral) and Bollinger Bands were 31% narrower than normal.

Open         High          Low           Close         Volume
73.280      73.800      72.820      73.330      240,218

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period      50-period       200-period
Close:                       72.96             71.53                70.76
Volatility:                22                   21                     25
Volume:                  256,985         345,248          485,485

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.


RAMSAY FPO is currently 3.6% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of RHC.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on RHC.AX and have had this outlook for the last 20 periods.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 81.4649. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 2 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 54.88. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 11 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -8. This is not a topping or bottoming area. The last signal was a buy 2 period(s) ago.


The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 7 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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