Stocks to watch at new heights: Molina and WR Berkley attempt breakouts

As equity market volatility continues, there are two breakout stocks to watch – Molina Health (MS) and WR Berkeley (WRB). Both leaders broke above buy points on Friday morning before pulling back as the stock market fell, underscoring the importance of maintaining a defensive stance in the current environment.


Stocks to watch: Molina Healthcare breaks out

Molina Healthcare provides health insurance through government programs such as Medicare and Medicaid. In the last quarter, profits and sales increased by 34% and 18% respectively.

The company’s third quarter results are due Oct. 26 after the market closes. Molina is expected to earn $4.21 per share on sales of $7.8 billion.

Shares of the Department of Health climbed as high as 362.73 on Friday morning, breaking above the buy point of 361.35 on a flat basis, according to IBD MarketSmith’s chart analysis. But the stock quickly reversed lower, falling more than 1%.

Molina is one of the best healthcare stocks to watch. Its relative strength line hit a new high this week, which is a key indicator of technical strength, especially when markets are weak.

Meanwhile, healthcare giant Dow Jones UnitedHealth (A H) raised its earnings outlook after beating earnings estimates early on Friday.

The insurance leader reaches a new high

WR Berkley traded as high as 72.54 in the first hour of Friday’s session, briefly breaking above a buy point of 72.42 in a choppy consolidation base. But stocks then turned the corner, trading squarely in the red. Winnings are expected on October 24.

Berkley’s US Insurance segment underwrites commercial policies that are often more complicated or specialized than those offered by standard insurance companies.

This segment serves a wide variety of businesses, from property and casualty to workers’ compensation. Other services are tailored to industries such as agriculture, fine arts and jewelry, cybersecurity, and energy. It also operates in more than 60 countries.


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