Unlock: Cepheid (CPHD) Trade Idea
Sector: Molecular Testing
Current Price: $58.18
Stop Loss: $55.00
Time Duration: 42 Days
Trade Idea: Buy CPHD August 60 Calls for $2.40 debit or less.
The $4.1 billion maker of systems enable molecular testing for organisms and genetic-based diseases has been posting incredible beats on Revenue and EPS each quarter. Last quarter CPHD posted 24% total revenue growth and 31% ex-forex impact. Earnings are coming up on July 23 and we believe we will see the growth momentum continue for two reasons. One reason is Same-Store ER visits are trending higher, in fact hitting an all time record high (see first chart below). The second reason is CPHD is the second biggest beneficiary of this trend (see second chart below). Meanwhile, the stock is back to support.