Jeffries Suggests Getting Long Amedisys

Amedisys (NASDAQ: AMED) is a provider of home health services to the chronic, co-morbid, and aging American population. They are scheduled to speak at the 35th Annual Deutche Bank Health Care Conference tomorrow and Jeffries recommends that investors think about getting long the name ahead of the conference and perhaps another volatile trading week.

Jeffries analysts cited the strong organic revenue trends in the home nursing industry, as well as the sectors defensive nature that “should bode well for sector multiples, particularly as investors begin to position their portfolios defensively again.”

Amedisys is currently trading lower on the session by 0.85% as the overall market runs higher. With the stock at $57.09 it is resting at a key pivot point for the stock: it has run hard and is consolidating around the 50 day moving average (is also trading well above the 200-day moving average), though is also sitting right at three-year historical resistance. If the company can garner bull support, a massive break-out to the upside could ensure though a retracement down toward $55 is not out of the question either