Medical device company C.R. Bard (BCR) has had a tremendous run from its 2002 low and its 2009 low, but with no top in sight, we remain bulls on this name.
The long-term picture of Bard is nothing less than impressive as can be seen in the chart, above. Prices have corrected along the way in this multi-year markup, but the dips have been shallow and the On-Balance-Volume line has displayed a smooth uptrend, suggesting longs continue to hold their positions.
The short-term picture is also encouraging (see the chart, below).
Holders of BCR endured an eight-month consolidation phase from November through early July, as BCR marked time around the $170 level. Prices broke out to the upside in July and August, ignoring the weakness in the broader market. The On-Balance-Volume (OBV) line recently made a new high and should be foreshadowing a breakout to new highs for BCR.
Projecting the height of the recent consolidation (from $200 to $180, or $20) to hopefully an eventual breakout at $200, we get $220 as our next upside target for BCR.