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TransEnterix Inc. (NYSE American:TRXC) facts you simply cannot ignore

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Well-rounded due diligence on a stock should take into account a basic analysis of core company trends such as top-line and bottom-line performance, margins, analyst views, cash flows, and overall balance sheet health. But that’s not all. One must also take a dispassionate, professional survey of stocks technical characteristics.

For that, we must turn to the chart. Todays object of technical analysis is TransEnterix Inc. (TRXC).

We will start our analysis by examining overall direction of trend. In the most basic sense, we can see that TRXC has been working in a bullish posture on a larger timeframe, as indicated by 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. As noted, for TRXC, that adds up to a bullish designation the main point being that we have money flows leaning in a generally positive direction for the stock.

Next, we will turn to our analysis of the primary oscillating indicators to assess the degree to which the stock is stretched in its movement at present. The key tools for this analysis are the 14-day Relative Strength Indicator (RSI) and the 20-day fast stochastic. In each case, the point is to measure overbought or oversold behavior ie, whether the stock has gone too far too fast in one direction or the other. 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 TRXC, we can see that our 14-day RSI shows a score of 60.76%, while the 20-day fast stochastic reports a score of 39.95%.

Next, we will turn to key levels of interest on the chart, with an emphasis on Fibonacci retrace points, range extremes, and major moving averages. In this case, the critical 38.2% level drawn off the 52-week high of $5.00 sits at $3.26. TRXC also has additional resistance above at the stocks 200-day simple moving average, which sits at $ 1.12.

We also want to look at relative performance and overall volatility scoring to understand value and risk in play. TRXC has moved $+1.65 over the past month or so. Over the trailing 100 days, the stock is outperforming the S&P 500 by 533.23%. This movement has come on a more volatile bearing from one day to the next relative to the broader market, according to the stocks 36-month beta.

Similarly, we can see that the stocks recent action has come on a historical volatility score of 291.67%. To get that score, one has to take the standard deviation of returns for a random trading input assuming buying the stock at a given average price during the specified period. On a more basic level, one might look at the 20-day ATR as a percentage of its 20-day moving average. That measure gives us a volatility score of 15.66%.

Finally, we?ve spent some time looking at price as a factor in many forms and from many angles. But what about volume? Notably, many chartists see volume as more indicative for conviction in bearing or pattern than price measures, averages, or oscillators. Volume records the true degree of participation involved in a stock. If price pattern is like a word written on a word processor, volume is like the font size and punctuation. In this case, 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.

That wraps up todays analysis, but we will be sure to check back on 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

I graduated from UCSD with a degree in Journalism. With more than 5 years of experience in freelance journalism, my forte is covering stock fundamentals.

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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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