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Transocean Ltd. (NYSE: RIG) could be heading into the buy zone

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It’s time to take an in-depth technical look at Transocean Ltd. (NYSE: RIG) . Our goal here today is to examine how the stock is behaving so we can use that examination as a lens through which to evaluate the stock as a possible investment opportunity.

Technical analysis is predicated on the idea that all important information is already interpolated by buyers and sellers of a security, so the only thing left to really interpret and predict the action is that behavior itself. For market timers, one of the most important tools we have at hand is the key indicators that show whether the stock is stretched in one direction or the other too much, too far, or too fast. In other words, is the stock overbought, oversold, or somewhere in the middle?

For that, we first turn to the RSI measure. The 14-day RSI is the standard flag-bearer for this type of analysis. Right now, for Transocean Ltd., the measure stands at 55.24%. That shows where the stock is as far as the degree to which it is becoming overbought or oversold relative to its price history.

If we look at other overbought/oversold oscillators, we can get even more perspective. The stochastic measure is a good example. Right now, the stock over the past month of action shows a score of 72.35% on the 20-day fast stochastic.

In an even broader sense, NYSE: RIG has recently been showing trading action that suggests an overall bearish posture on the chart according to trend-related measures such as a major moving average. In this case, we are looking at the relative positions of the 50-day and 200-day simple moving averages. The implication, of course, is that money is generally treating this stock in a negative manner in terms of capital flows.

Next, we want to look at participation levels. Our conviction on a stock in terms of its technicals is almost entirely subject in the end to the type of volume of trade we see going on in the stock. Patterns of action gain meaning strictly through volume levels. In other words, you need plenty of people playing the game for the score to matter. At this point, relative volume measures have been weak, indicating lack of interest among traders, investors, and money managers for the stock over the past month. As it stands at present, the stock might find important action around key levels on the chart, which is something else we like to take a close look at.

One of the best ways to define key levels is through derivations built off of the Fibonacci series. This is widely used by professional firms in the market. The Fibonacci series is a set of numbers derived from adding the prior number to the next one: 0,1,1,2,3,5,8,13,21,34, etc. You will note that each number is the sum of the prior two numbers. The series has been found to exemplify the mathematics underlying many growth systems. The ratio of one number to the next in the series approaches 61.8% (or 38.2%, depending on which direction you move) as a limit. In markets, the key levels are often played at retracements defined by this ratio and its associated connections. In this case, the critical 38.2% level drawn off the 52-week low of $7.20 sits at $10.81. NYSE: RIG also has additional resistance above at the stocks 200-day simple moving average, which sits at $ 11.20.

So far, we have looked at oscillators, moving average trends, and participation levels. However, sometimes, there is information carried in simply the degree of movement in a stock. For example, over the past trading month, NYSE: RIG has made a move of +1.32. By comparison, over the trailing 100 days, the stock is underperforming the S&P 500 by 17.77, and its gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange.

Obviously, that tells us a ton about this name. To even drill down deeper into the movement, we can see that the stocks recent action has come on a historical volatility score of 44.15%. That number is derived from the standard deviation of returns of some hypothetical trader buying the stock at a given average price during the specified period. If we want to look at range of action in a simplistic sense, the best way is to use the average true range over the most common reference time period, so we are staying on the same page with the market. In this case, the 20-day ATR as a percentage of its 20-day moving average comes in at 4.22%.

We plan to update our take on this stock as its pattern of behavior progresses from here.

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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Facebook, Inc. (FB) beta you simply cannot ignore

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. Stock of Facebook, Inc. (FB) opened at $177.30 and last traded at $178.41 x 200. More than 2,643,177 shares exchanged hands compared to an average daily volume of 16,216,728 shares. At the current pps, the market capitalization stands at 518.208B.

Let’s take a look at how the stock has performed this year so far. Facebook, Inc has moved -0.98% in the last 5 days or -0.68% in the last 1 month. In long-term, Facebook, Inc has changed 4.33% in 3 months and  47.94% in this year itself. Below is the chart to get a feel for the recent price action.

 

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. Facebook, Inc. (FB) currently has a Beta value of 1.21 . 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 Facebook, Inc current P/E ratio. Facebook, Inc. (FB) currently has a PE ratio of 34.55. 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 Facebook, Inc beta and P/E ratio, the EPS cannot be ignored. Facebook, Inc EPS for the trailing twelve months was 5.16. 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. Facebook, 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:

Facebook, Inc. (FB) has received an average target price from analysts of $207.41 amounting to a recommendation rating of Buy. That comes from 46 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 30.44. To give a sense of trend, the same data point on the estimate for next year is currently sitting at 26.84 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 37.00. That shift to 25.00 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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Investors Should Consider Apple Inc. (AAPL) Beta Values Before Final Decision

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. Stock of Apple Inc. (AAPL) opened at $172.50 and last traded at $173.400 x 500. More than 5,069,667 shares exchanged hands compared to an average daily volume of 28,052,767 shares. At the current pps, the market capitalization stands at 886.952B.

Let’s take a look at how the stock has performed this year so far. Apple Inc has moved 2.03% in the last 5 days or 0.97% in the last 1 month. In long-term, Apple Inc has changed 9.15% in 3 months and  49.16% in this year itself. Below is the chart to get a feel for the recent price action.

 

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. Apple Inc. (AAPL) 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 Apple Inc current P/E ratio. Apple Inc. (AAPL) currently has a PE ratio of 18.76. 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 Apple Inc beta and P/E ratio, the EPS cannot be ignored. Apple Inc EPS for the trailing twelve months was 9.210. 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. Apple Inc is estimated to release its next earnings report on 9 / 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:

Apple Inc. (AAPL) has received an average target price from analysts of $190.70 amounting to a recommendation rating of Overweight. That comes from 39 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 15.00. To give a sense of trend, the same data point on the estimate for next year is currently sitting at 14.11 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 32.00. That shift to 31.00 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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PayPal Holdings, Inc. (PYPL) Could Be In For A Major Breakout

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. Stock of PayPal Holdings, Inc. (PYPL) opened at $74.08 and last traded at $75.39 x 200. More than 1,483,443 shares exchanged hands compared to an average daily volume of 9,389,196 shares. At the current pps, the market capitalization stands at 89.771B.

Let’s take a look at how the stock has performed this year so far. PayPal Holdings, Inc has moved 1.36% in the last 5 days or -3.87% in the last 1 month. In long-term, PayPal Holdings, Inc has changed 20.00% in 3 months and  88.90% in this year itself. Below is the chart to get a feel for the recent price action.

 

Fundamentals you simply cannot ignore

Investors try to use stocks with high beta values to quickly recoup their investments after sharp market losses. PayPal Holdings, Inc. (PYPL) currently has a Beta value of 1.21 . 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 PayPal Holdings, Inc current P/E ratio. PayPal Holdings, Inc. (PYPL) currently has a PE ratio of 58.35. 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 PayPal Holdings, Inc beta and P/E ratio, the EPS cannot be ignored. PayPal Holdings, Inc EPS for the trailing twelve months was 1.28. 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. PayPal Holdings, 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:

PayPal Holdings, Inc. (PYPL) has received an average target price from analysts of $79.77 amounting to a recommendation rating of Overweight. That comes from 47 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 38.99. To give a sense of trend, the same data point on the estimate for next year is currently sitting at 32.26 times earnings. Drilling down a bit further, this quarter, we are looking at an average estimate from analysts for earnings per share level of 44.00. That shift to 36.00 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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