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Time for a Turnaround at Finish Line for QuinStreet Inc. (NASDAQ: QNST)

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Today?s object of technical analysis is QuinStreet, Inc. (QNST). After one does a thorough job of checking for chinks in the armor on the fundamental side, the work of due diligence is only just beginning. The next step is to make sure the technical character of the chart matches the story in an advantageous way. We will look at some of the key points in that analysis today for QNST.

First off, when looking at the overall directional impact of recent money flows, we will use 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.

In this case, for QNST, that adds up to a bullish designation, which suggests that flows have been working in an overall positive direction on the chart. With that established, the question now turns to whether or not key indicators suggest the action has pushed too far too fast, leading to a statistically likely mean-reversion probability going forward.

For that, we rely on our key overbought/oversold oscillators. There are many out there, but we prefer 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 QNST, the 14-day RSI shows a score of 74.73%, while the 20-day fast stochastic shows a score of 54.35%.

From there, we want to next turn our attention to relative performance and volatility scoring, or Beta. QuinStreet, Inc. has moved +1.06 over the past month or so. Over the trailing 100 days, the stock is outperforming the S&P 500 by 108.35.

This movement has come on a more volatile bearing from one day to the next relative to the broader market, according to the stock?s 36-month beta. In addition, we can see that the stock?s recent action has come on a historical volatility score of 61.99% (as indicated by taking the standard deviation of returns for a random trading input assuming buying the stock at a given average price during the specified period). Furthermore, the 20-day ATR as a percentage of the 20-day moving average grants another key view into relative volatility scoring. By that measure, we reach a score of 5.43%.

That brings us neatly to an examination of key levels of support and resistance on the chart. For this, we generally bias toward range markets, fib levels, and moving averages. In any of these cases, it?s important to understand that the concept of support and resistance is a bit like what we might call ?social gravity?. It?s a game theory concept. It?s the point where people assume other people will be acting.

Keynes called this type of logic the beauty contest. The idea is based on a fictional newspaper contest in which people are asked to pick which of a series of pictures of women?s faces will be the most popular picks for ?most beautiful?. Given that the winner will be someone who guesses what other people picked the most, the goal has nothing to do with picking the most beautiful face. It is figuring out which picture the most other people will think the most other people will think is the most beautiful. This is called ?recursive logic?. And it forms the basis for key support and resistance in markets as well.

In short, popular meeting points on the chart tend to be established either where they have been before (range extremes), or at key Fibonacci levels or moving averages. In this case, the critical 38.2% level drawn off the 52-week high of $9.15 sits at $6.65. QNST also has additional resistance above at the stock?s 200-day simple moving average, which sits at $ 4.49.

Lastly, we need to quickly cover relative volume. Here, we want to examine relative volume measures to get a feel for interest in the stock of late. Right now, this stock has been showing strong relative volume, which indicates interest among those making a market for shares of the stock, and that should be seen as a key factor in drawing conclusions about your level of interest as well.

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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Stocks To Watch: Lowe’s Companies, Inc. (LOW), Signet Jewelers Limited (SIG), Campbell Soup Company (CPB), Palo Alto Networks, Inc. (PANW)

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The following stocks are set to release their earnings today and need to be on top of your radar. These include Lowe’s Companies, Inc. (LOW), Signet Jewelers Limited (SIG), Campbell Soup Company (CPB), Palo Alto Networks, Inc. (PANW)

In the previous session, stock of Lowe’s Companies, Inc. (LOW) opened at $80.66 and last traded at $80.66 x 300. More than 7,507,099 shares exchanged hands compared to an average daily volume of 6,599,563 shares. At the current pps, the market capitalization stands at 67.84B.

The Analyst Chirp:

Lowe’s Companies, Inc. (LOW) has received an average target price from analysts of $86.29 amounting to a recommendation rating of Overweight. That comes from 31 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 17.23. To give a sense of trend, the same data point on the estimate for next year is currently sitting at 15.14 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 27.00. That shift to 27.00 heading into next quarter.

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. Lowe’s Companies, Inc. (LOW) currently has a Beta value of 0.99 . 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 Lowe’s Companies, Inc current P/E ratio. Lowe’s Companies, Inc. (LOW) currently has a PE ratio of 23.13. 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 Lowe’s Companies, Inc beta and P/E ratio, the EPS cannot be ignored. Lowe’s Companies, Inc EPS for the trailing twelve months was 3.52. 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. Lowe’s Companies, Inc is estimated to release its next earnings report on 1 / 2018 (N/A-Not know at this time). It would be interesting to see how the earnings fair out considering the recent developments.

 

Technical chart:



 

 

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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Earnings Preview For Dollar Tree, Inc. (DLTR), Guess’, Inc. (GES), Urban Outfitters, Inc. (URBN), Hormel Foods Corporation (HRL)

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The following stocks are set to release their earnings today and need to be on top of your radar. These include Dollar Tree, Inc. (DLTR), Guess’, Inc. (GES), Urban Outfitters, Inc. (URBN), Hormel Foods Corporation (HRL)

In the previous session, stock of Dollar Tree, Inc. (DLTR) opened at $95.12 and last traded at $99.25 x 100. More than 5,270,702 shares exchanged hands compared to an average daily volume of 2,372,381 shares. At the current pps, the market capitalization stands at 23B.

The Analyst Chirp:

Dollar Tree, Inc. (DLTR) has received an average target price from analysts of $94.17 amounting to a recommendation rating of Overweight. That comes from 26 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 19.92. To give a sense of trend, the same data point on the estimate for next year is currently sitting at 18.01 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 22.00. That shift to 22.00 heading into next quarter.

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. Dollar Tree, Inc. (DLTR) currently has a Beta value of 0.83 . 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 Dollar Tree, Inc current P/E ratio. Dollar Tree, Inc. (DLTR) currently has a PE ratio of 24.84. 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 Dollar Tree, Inc beta and P/E ratio, the EPS cannot be ignored. Dollar Tree, Inc EPS for the trailing twelve months was 3.91. 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. Dollar Tree, Inc is estimated to release its next earnings report on 1 / 2018 (N/A-Not know at this time). It would be interesting to see how the earnings fair out considering the recent developments.

 

Technical chart:



 

 

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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Will GameStop Corp. (GME) Earnings Surprise Investors ?

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In the previous session, stock of GameStop Corp. (GME) opened at $16.40 and last traded at $16.68 x 300. More than 3,796,717 shares exchanged hands compared to an average daily volume of 2,649,384 shares. At the current pps, the market capitalization stands at 1.67B.

Retailer Offers Holiday Shoppers the Lowest Prices Available on Consoles, Games, Toys and Collectibles

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. GameStop Corp. (GME) currently has a Beta value of 0.97 . 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 GameStop Corp current P/E ratio. GameStop Corp. (GME) currently has a PE ratio of 4.95. 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 GameStop Corp beta and P/E ratio, the EPS cannot be ignored. GameStop Corp EPS for the trailing twelve months was 3.32. 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. GameStop Corp is estimated to release its next earnings report on 1 / 2018 (N/A-Not know at this time). It would be interesting to see how the earnings fair out considering the recent developments.

 

Technical chart:



 

The Analyst Chirp:

GameStop Corp. (GME) has received an average target price from analysts of $22.05 amounting to a recommendation rating of Hold. That comes from 13 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 4.92. To give a sense of trend, the same data point on the estimate for next year is currently sitting at 4.95 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 12.00. That shift to 12.00 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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