Connect with us

Stocks

Bearish Eagle declines $1.8 (1.61%)

A quick look at yesterday: despite the risk-off mood, Eagle Materials was range-bound between $110.08 to $113.94 and settled at $110.2.

  • Yesterday's trading volume was 267,436 shares which is slightly below the 21-day average of 303,501.
  • Yesterday's 1.61% loss extends a 3 day bearish run in which Eagle Materials had already lost $3.16 from its share value.

Approximately 8 months ago, Eagle reached a significant high of $167.98 but has struggled to hold onto its gains and declined 33.33% since then. The company's market cap is $4.15 billion with an average daily volume of 303,501 shares. $561.39 million was Eagle Materials's last reported revenue with $2.82 being the current EPS.

Fundamental analysis indicates that Eagle Materials​ deserves the 'Strong Buy' rating.

When analyzing Eagle Materials's indicators the one that pops out as most significant is the company's dividend yield ratio (DYR), having a solid 0.55%. Although it is currently below its trailing twelve month average of 0.35%, it is still strong and well above competition. The DYR represents the percentage of a company's share price that it pays in dividends each year. For example, if a company has a 100 USD share price and it pays dividends that cost 10 USD per year, its DY would be 10%. The dividend payout ratio is not quite as good as the industry — it has dropped from 10% reported last quarter to the current 9%. The price to book ratio is doing worse than the competition— it has decreased from 3.61 reported last quarter to the current 3.72. Price to sales ratio has improved from 2.48 to 2.32, but remains below the industry average.

In comparison to recent filings, some of Eagle Materials's indicators have improved and others have not, yet the stock's fundamentals remain slightly under the competition.

Despite being in the red so far in the current trading session, Eagle Materials Inc. peaked above its 5 day Simple Moving Average around $113.47 — typically an early indicator of a new bullish trend beginning to emerge. Eagle Materials's lower Bollinger band is at $108.23, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains. Eagle could begin to recover as it approaches significant support, now $1.31 away from $108.89. Dipping below could be an indication that further losses are ahead.

Overall, looking at the technical analysis landscape, it seems Eagle —which is currently on a downtrend— might reverse course and start pointing upward in the short term.

Eagle was not the only decliner in the materials sector; BHP Billiton lost 2.8% yesterday and closed at $50. Linde went down 1.78%, closed at $281.53. BHP draws back 2.43% yesterday to close at $65.78.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

Stocks

Is the bullish run coming to an end? Materials Select Sector SPDR Fund closed at $72 (-1.13%)

A tough session dominated by bearish sentiment left XLB 80 cents lower, while setting a $71.17 to $72.57 session range.

  • Yesterday's down move comes on the back of a 4 day uptrend, during which Materials Select Sector SPDR Fund added $4.79 to its value.

Despite being in the red so far in the current trading session, Materials Select Sector SPDR Fund peaked above its 21 day Simple Moving Average around $72.39 — typically an early indicator of a new bullish trend beginning to emerge. Materials Select Sector SPDR Fund could begin to recover as it approaches significant support, now 74 cents away from $71.24. Dipping below could be an indication that further losses are ahead.

Despite suffering losses in today's session, technical analysis is indicating that Materials Select Sector SPDR Fund will undergo a significant bounce in the immediate term.

In the meantime, negative performances are also seen in other markets, iShares MBS ETF plunges 1% yesterday and closed at $92.66. After ending yesterday's session at $48.22, Vanguard Total International Bond Index Fund ETF Shares lost 34 cents and is trading around $47.88.

At the same time, iShares Trust – iShares iBonds Dec 2021 Term Treasury ETF moves 0.04% yesterday and closed at $25.36.

Having set a significant high of $90.61 10 days ago, Materials Select Sector SPDR Fund is trading 8.14% lower.

Continue Reading

Stocks

SBA Communications jumped $3.63 from a 1 year low and ended session at $283.12

SBA Communications dropped to $279.49, its lowest point in 1 year. It later recovered $3.63 and closed at $283.12. Daily trading volume (668,749 shares) increased, making up 130% of the 21-day average (515,552).

With around 9 hours until market open on the NASDAQ, yesterday's session saw to it that S&P 500 closed at 3,783.28 after losing 0.2%. SBA Communications closed lower yesterday, with similar drops noticed throughout the Real Estate sector (down 1.67%).

SBA Communications Corp made an initial break below its 5 day Simple Moving Average at $288.16, a possible indication of a forthcoming negative trend. SBA Communications is currently flirting with an active Fibonacci support level around $284.21. On the other hand, note that SBA Communications could begin to recover as it approaches significant support, now $4.67 away from $278.45. Dipping below could be an indication that further losses are ahead.

Several technical indicators are adding weight to the bearish momentum seen yesterday and forecasting SBA Communications to extend its recent losses.

Fundamental analysis indicates that SBA Communications​ is holding on to its 'Neutral' rating.

SBA Communications's most notable indicator is the company's price to book ratio (PB). It is standing at -5.61, a decrease from its previous value of -6.26, yet is still above its trailing twelve-month average and is surpassing the competition. The PB Ratio is a fundamental analysis indicator that compares the book value of a stock to its market value. By showing the difference between the stock’s market value and the value the company has stated in its financial books, P/B helps investors determine whether the stock is undervalued or overvalued (relative to its book value). Debt-to-equity ratio fell from its previous value of -2.79 to -2.55, yet it is above the competition average. Dividend yield ratio with a value of 0.74%, appears to be the most notable. This is above industry standard and shows an improvement over the preceding value of 0.76%. Free cash flow is also worth noting with a value of 319.15 million, which is above industry standard and shows an improvement over the preceding value of 214.58 million.

When comparing to recent reports, some of SBA Communications's indicators look better than others, and the stock's fundamentals remain slightly greater than the competition.

SBA Communications hit a significant low of $282.27 around 7 days ago, but has since recovered 3.95%. So far in 2022 it has been beating the S&P 500 by 1.93%. The company has a market cap of $30.54 billion with an average daily volume of 515,552 shares. SBA Communications's last revenue report was $652 million with an EPS of 64 cents.

Continue Reading

Stocks

Following a flat day today, Nuance Communications closed at $56 continuing its recent flat trend

A quiet day for Nuance Communications as it remained range-bound within a $55.98 – $56 range before closing at $56.

  • Nuance Communications has been pretty quiet for the last a month, trading mostly flat and moving by only 1.16 cents on average.

With around 17 hours until market open on the NASDAQ, today's session saw to it that Nasdaq shed 0.25% and closed at 11,149. While Nuance Communications was flat, the Technology sector as a whole fell 0.125%.

When analyzing Nuance Communications's indicators, the one that stands out as most significant is the company's Return on equity (ROE) with a -7%. Note that it is now below its trailing twelve-month average of -4% and below the competition average. ROE is a measure of financial performance calculated by dividing net income by shareholders' equity. This ratio gives investors an idea of how well the company handles its shareholder's money. The price to sales ratio is doing worse than the competition— it has decreased from 12.94 reported last quarter to the current 13.36. The price to book ratio is not quite as good as the industry — it has dropped from 10.05 reported last quarter to the current 11.28.

The current state of fundamentals and indicators shows that Nuance Communications's overall fundamentals are slightly below competition.

Nuance Communications, Inc.'s upper Bollinger band is at $56, suggesting that a downward move may follow. Despite this, Nuance Communications is approaching key support, around 1 cents away from $56. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls.

Despite the market lacking direction, technical chart analysis strongly suggests Nuance Communications is positioned for a downward move in the near term.

Meanwhile, mixed performances were seen by other technology stocks as TSM was up 2.27%. Qualcomm was up 2.06%. Oracle was up 1.48%.

Nuance Communications hit a significant low of $54.68 around 9 months ago, but has since recovered 2.4%. So far in 2022, it has been outperforming the Nasdaq by 42.87%. Nuance Communications has a market cap of $17.88 billion with an average daily volume of 15.93 million shares. Nuance Communications's last revenue report was $321.44 million with an EPS of 8 cents.

Continue Reading
Advertisement