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Intel Corp. (NASDAQ: INTC) could be heading into the buy zone

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We turn our attention to the charts today. Technical analysis. It?s the artistic side of the analysis. Here, we deal with lines and angles and patterns. Here, we try to listen to the market; to hear its opinion of a stock, quite independent of the seeming facts of the business. Here, we look to paint a picture, as it were. Today?s subject in this exercise is Intel Corporation (INTC).

Let?s start with a quick evaluation of relative volume measures. Here, we want to examine the degree to which traders, investors, and money managers are more or less interested over the past month in transacting in this security. At this point, this stock has been showing strong relative volume, which indicates interest among those participating in the market for shares of INTC over the past month. That sets us up to look at relative performance of the stock along with range and volatility measures. This boils down to the concept of what is known as ?beta?.

First off, we can readily state the facts on relative performance. INTC has moved +5.33 over the past month or so. Over the trailing 100 days, the stock is outperforming the S&P 500 by 16.31. As to the point of beta, we can see the stock has been generally moving more than the rest of the market on a day to day basis. That is according to the 36-month beta score. Another way to look at this is through taking the standard deviation of returns calculated as representing a hypothetical buyer of the stock at a random point at a given average price during the specified period. That gives us a historical volatility score of 25.35%. Finally, in this class of data, we can look at the 20-day ATR as a percentage of the 20-day moving average, which gives us a natural volatility score of 1.78%.

Now, it?s time to look at trend and extent of movement. From a certain point of view, these are the natural opposites in technical analysis. On the one hand, we know experienced traders and technical manuals teach us that ?the trend is your friend.? However, at the same time, we know it?s wise to fade extreme, overdone movement. That posits a natural tension for analysts, and unfortunately, the best we can do is to look at the facts.

In the first place, the broad impact of money flows should be viewed through the tried-and-tested lens of moving average analysis. In this case, we look at the relative positioning of the 50-day and 200-day simple moving averages. In other words, if the 50-day moving average is trading above the 200-day, it is traditionally seen as a bullish chart trend. Conversely, if the 50-day moving average is trading below the 200-day, it is traditionally labeled a bearish trend or bearing. For INTC, that adds up to a bullish designation, which suggests that flows have been working in an overall positive direction on the chart.

To counter that notion, we now turn to a look at mean reversion oscillators. Our key indicators of note attempt to score the action as to whether or not a security has pushed too far too fast, leading to a likelihood of some kind of reversion to the mean movement becoming highly probable.

There is a host of oscillating indicators that can offer up such an analytic perspective. We have learned to rely most on RSI and stochastics. Specifically, we look at the 14-day Relative Strength Indicator (RSI) and the 20-day ?fast stochastic?. For both of these measures, if we see a score above 75 (overbought) or below 25 (oversold), history suggests one is wise to expect some reversion to the mean. For INTC, the 14-day RSI shows a score of 89.04%, while the 20-day fast stochastic shows a score of 90.86%.

We close today?s analysis with a quick check of key levels. For our means, we like to quickly check the key Fibonacci retracement zone as well as the primary institutional long-term moving average (the 200-day simple average). In the case of is Intel Corporation (INTC), the critical 38.2% level drawn off the 52-week high of $45.19 sits at $40.62. INTC also has additional resistance above at the stock?s 200-day simple moving average, which sits at $ 36.28.

Hopefully, this analysis has offered up some useful perspective. We will catch up with this stock again soon.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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CA, Inc. (CA) Could Be In For A Major Breakout

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Stock of CA, Inc. (CA) opened at $32.26 and last traded at $32.12 x 800. More than 693,693 shares exchanged hands compared to an average daily volume of 1,677,896 shares. At the current pps, the market capitalization stands at 13.41B.

TriNet Group, Inc. (NYSE: TNET), a leading provider of comprehensive HR solutions, today announced that Richard Beckert has joined TriNet as senior vice president of finance. Beckert will be appointed as chief financial officer immediately following…

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. CA, Inc. (CA) currently has a Beta value of 1.04 . Beta is a measurement of a stock’s price fluctuations, which is often called volatility and is used by investors to gauge how quickly a stock’s price will rise or fall. A stock with a beta of greater than 1.0 is riskier and has greater price fluctuations, while stocks with beta values of less than 1.0 are steadier and generally larger companies. Beta is often measured against the S&P; 500 index. An S&P; 500 stock with a beta of 2.0 produced a 20 percent increase in returns during a period of time when the S&P; 500 Index grew only 10 percent. This same measurement also means the stock would lose 20 percent when the market dropped by only 10 percent. Next, let’s take a look at CA, Inc current P/E ratio. CA, Inc. (CA) currently has a PE ratio of 17.80. PE ratio is an important parameter to look at when trading a stock mostly because it is easy to calculate. There are a couple of ways to calculate PE ratio either by dividing share price by earnings per share or dividing the market cap by net income. It is important to note that the earnings are usually taken from the trailing twelve months (TTM). Nevertheless, P/E tells us how much an investor is willing to pay for $1 of a company’s earnings. The long-term average P/E is around 15, so on average, investors are willing to pay $15 for every dollar of earnings. Another useful way to look at this: Turn the P/E ratio around to look at the E/P ratio, which when expressed as a percentage gives us the earnings yield. For instance: 1/15 gives us an earnings yield of 6.67%.

While we have already looked at CA, Inc beta and P/E ratio, the EPS cannot be ignored. CA, Inc EPS for the trailing twelve months was 1.80. Traders and investors often use earnings per share (TTM) to determine a company’s profitability for the past year. So in essence, EPS is the amount of a company’s net income per share of common stock. Earnings per share equal the company’s net income less any dividends paid on preferred stock divided by the weighted average number of common stock shares outstanding during the year. CA, Inc is estimated to release its next earnings report on 3 / 2018 (N/A-Not know at this time). It would be interesting to see how the earnings fair out considering the recent developments.

The Analyst Chirp:

CA, Inc. (CA) has received an average target price from analysts of $32.95 amounting to a recommendation rating of Hold. That comes from 17 different analysts. Perhaps, the driver for that assessment comes from the company’s valuations. Right now, we are looking at a median price-to-earnings ratio for this calendar year of 13.19. To give a sense of trend, the same data point on the estimate for next year is currently sitting at 12.68 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 14.00. That shift to 14.00 heading into next quarter.

 

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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Why BioMarin Pharmaceutical Inc. (BMRN) could blow up your portfolio

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Stock of BioMarin Pharmaceutical Inc. (BMRN) opened at $81.82 and last traded at $81.32 x 200. More than 539,968 shares exchanged hands compared to an average daily volume of 1,351,136 shares. At the current pps, the market capitalization stands at 14.27B.

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. BioMarin Pharmaceutical Inc. (BMRN) currently has a Beta value of 1.42 . Beta is a measurement of a stock’s price fluctuations, which is often called volatility and is used by investors to gauge how quickly a stock’s price will rise or fall. A stock with a beta of greater than 1.0 is riskier and has greater price fluctuations, while stocks with beta values of less than 1.0 are steadier and generally larger companies. Beta is often measured against the S&P; 500 index. An S&P; 500 stock with a beta of 2.0 produced a 20 percent increase in returns during a period of time when the S&P; 500 Index grew only 10 percent. This same measurement also means the stock would lose 20 percent when the market dropped by only 10 percent. Next, let’s take a look at BioMarin Pharmaceutical Inc current P/E ratio. BioMarin Pharmaceutical Inc. (BMRN) currently has a PE ratio of N/A. PE ratio is an important parameter to look at when trading a stock mostly because it is easy to calculate. There are a couple of ways to calculate PE ratio either by dividing share price by earnings per share or dividing the market cap by net income. It is important to note that the earnings are usually taken from the trailing twelve months (TTM). Nevertheless, P/E tells us how much an investor is willing to pay for $1 of a company’s earnings. The long-term average P/E is around 15, so on average, investors are willing to pay $15 for every dollar of earnings. Another useful way to look at this: Turn the P/E ratio around to look at the E/P ratio, which when expressed as a percentage gives us the earnings yield. For instance: 1/15 gives us an earnings yield of 6.67%.

While we have already looked at BioMarin Pharmaceutical Inc beta and P/E ratio, the EPS cannot be ignored. BioMarin Pharmaceutical Inc EPS for the trailing twelve months was -1.07. Traders and investors often use earnings per share (TTM) to determine a company’s profitability for the past year. So in essence, EPS is the amount of a company’s net income per share of common stock. Earnings per share equal the company’s net income less any dividends paid on preferred stock divided by the weighted average number of common stock shares outstanding during the year. BioMarin Pharmaceutical Inc is estimated to release its next earnings report on N/A (N/A-Not know at this time). It would be interesting to see how the earnings fair out considering the recent developments.

The Analyst Chirp:

BioMarin Pharmaceutical Inc. (BMRN) has received an average target price from analysts of ${{marketwatch_AverageTargetPrice}} amounting to a recommendation rating of {{marketwatch_AverageRecommendation}}. That comes from {{marketwatch_NumberofRatings}} different analysts. Perhaps, the driver for that assessment comes from the company’s valuations. Right now, we are looking at a median price-to-earnings ratio for this calendar year of {{marketwatch_MedianPEonCYEstimate}}. To give a sense of trend, the same data point on the estimate for next year is currently sitting at {{marketwatch_MedianPEonNextFYEstimate}} times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of {{marketwatch_NoofEstimates_this_quarter}}. That shift to {{marketwatch_NoofEstimates_next_quarter}} heading into next quarter.

 

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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Biogen Inc. (BIIB) finding value in an unloved sector

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Stock of Biogen Inc. (BIIB) opened at $309.69 and last traded at $312.51 x 200. More than 463,536 shares exchanged hands compared to an average daily volume of 1,353,516 shares. At the current pps, the market capitalization stands at 65.71B.

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. Biogen Inc. (BIIB) currently has a Beta value of 1.37 . Beta is a measurement of a stock’s price fluctuations, which is often called volatility and is used by investors to gauge how quickly a stock’s price will rise or fall. A stock with a beta of greater than 1.0 is riskier and has greater price fluctuations, while stocks with beta values of less than 1.0 are steadier and generally larger companies. Beta is often measured against the S&P; 500 index. An S&P; 500 stock with a beta of 2.0 produced a 20 percent increase in returns during a period of time when the S&P; 500 Index grew only 10 percent. This same measurement also means the stock would lose 20 percent when the market dropped by only 10 percent. Next, let’s take a look at Biogen Inc current P/E ratio. Biogen Inc. (BIIB) currently has a PE ratio of 20.39. PE ratio is an important parameter to look at when trading a stock mostly because it is easy to calculate. There are a couple of ways to calculate PE ratio either by dividing share price by earnings per share or dividing the market cap by net income. It is important to note that the earnings are usually taken from the trailing twelve months (TTM). Nevertheless, P/E tells us how much an investor is willing to pay for $1 of a company’s earnings. The long-term average P/E is around 15, so on average, investors are willing to pay $15 for every dollar of earnings. Another useful way to look at this: Turn the P/E ratio around to look at the E/P ratio, which when expressed as a percentage gives us the earnings yield. For instance: 1/15 gives us an earnings yield of 6.67%.

While we have already looked at Biogen Inc beta and P/E ratio, the EPS cannot be ignored. Biogen Inc EPS for the trailing twelve months was 15.24. Traders and investors often use earnings per share (TTM) to determine a company’s profitability for the past year. So in essence, EPS is the amount of a company’s net income per share of common stock. Earnings per share equal the company’s net income less any dividends paid on preferred stock divided by the weighted average number of common stock shares outstanding during the year. Biogen Inc is estimated to release its next earnings report on 12 / 2017 (N/A-Not know at this time). It would be interesting to see how the earnings fair out considering the recent developments.

The Analyst Chirp:

Biogen Inc. (BIIB) has received an average target price from analysts of $352.87 amounting to a recommendation rating of Overweight. That comes from 35 different analysts. Perhaps, the driver for that assessment comes from the company’s valuations. Right now, we are looking at a median price-to-earnings ratio for this calendar year of 14.07. To give a sense of trend, the same data point on the estimate for next year is currently sitting at 13.18 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 29.00. That shift to 13.00 heading into next quarter.

 

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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