• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

PerkinElmer Could Rally Further After a Big Consolidation Breakout

The charts of the life sciences company suggest its stock could make a large upside move.
By BRUCE KAMICH
Aug 18, 2020 | 08:04 AM EDT
Stocks quotes in this article: TMO, DHR, PKI

There are countless companies rushing to make a Covid-19 vaccine, but in the end we only need two or three good ones, Jim Cramer told viewers of "Mad Money" Monday.

That's why the best way to make money isn't with the vaccine makers, but rather with diagnostic and life sciences companies such as Thermo Fisher Scientific (TMO) and Danaher Corp. (DHR) . In his first Executive Decision segment of "Mad Money," Cramer added another name to the list, PerkinElmer Inc. (PKI) , after speaking with Prahlad Singh, the company's president and CEO.

Singh said when it comes to Covid-19 testing the bottleneck isn't making machines that can test for the virus, it's providing turnkey solutions that can provide results quickly. PerkinElmer has partnered with different entities, including Rutgers and Yale universities, to help bring innovations such as saliva testing and free testing to market. All these innovations still have all the diagonstic components, Singh said, and that's where PerkinElmer shines.

Let's check out the charts and technical indicators of PKI to diagnose where its shares stand.

In this daily bar chart of PKI, below, we can see that prices corrected lower from January into the middle of March but rallied back quickly. By early June prices were making new highs for the move up and for the year. PKI is now trading above the rising 50-day moving average line and a bit extended above the rising 200-day moving average line. The trading volume has been more active since early March, telling me that more traders and investors have become involved in the story and the stock.

The On-Balance-Volume (OBV) line has been rising steadily since March and tells me that buyers of PKI have been more aggressive, with heavier volume traded on days when the stock has closed higher. The trend-following Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since late April but earlier this month crossed to the downside for a take profits sell signal -- a sell when the stock is in an uptrend.

In this weekly bar chart of PKI, below, we can see that prices broke out on the upside this year from a large sideways consolidation pattern. Prices are above the rising 40-week moving average line. The weekly OBV line has been in an uptrend the past three years and has made new highs this year to confirm and support the new price highs. The MACD oscillator is very bullish on this longer time frame.

In this daily Point and Figure chart of PKI, below, we can see some recent consolidation and a price target in the $152 area.

Bottom line strategy: PKI broke out of a large and bullish consolidation pattern (see the weekly chart above) and this means it can make a large upside move. We have price targets in the $152-$160 area so there is room for further gains. Traders could go long PKI around $120, risking a close below $112 for now. The $152-$160 area is our next upside price objective.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Health Care Equipment & Services | Healthcare | Life Sciences | Mad Money | Executive Interview | Real Money | Coronavirus

More from Stocks

Overnight Blood, Didn't It Matter? Snap's Whammy, Trading Bank Stocks and Zoom

Stephen Guilfoyle
May 24, 2022 7:35 AM EDT

There was the 'momentum play' on Monday and not much else as portfolio managers resisted temptation to increase risk exposure.

It's Easy to Overlook This Basic Rule of Investing

Paul Price
May 24, 2022 7:00 AM EDT

You can make big money via buying low. You just can't prove it until later.

Trading Places: Energy Takes Its 'QQQ' From Tech

Helene Meisler
May 24, 2022 6:00 AM EDT

Let's look at the charts of QQQ and QQQJ and line them up against energy and see what we get.

Stay Guarded Amid Rally's Rotation

James "Rev Shark" DePorre
May 23, 2022 4:41 PM EDT

Stocks spin, and that makes the market picture rather murky.

Dare I Recommend a Retail Name Like American Eagle Outfitters?

Bruce Kamich
May 23, 2022 3:15 PM EDT

Let's check out the charts.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 02:24 PM EDT PAUL PRICE

    An Interesting Chart

    I'm betting heavily that stocks will be way up aga...
  • 10:10 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    "Market Timing for Dummies"
  • 01:44 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10 Portfolio

    We're making a series of trades here.
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login