Analysts are bullish on these three stocks with lower RSI readings – News Couple

Analysts are bullish on these three stocks with lower RSI readings

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It’s all linked. Regardless of whether the market is making record highs or correcting, there are always outperformers and underperformers. Some indicators lead while others lag.

Contributor to / – MarketBeat

At either end of the spectrum lie two very different investment strategies. Riding premium racers is a popular momentum strategy. On the contrary, catching cold underperformers is more of a bargain-hunting approach.

Investors who prefer to expose the laggards have many basic and technical tools at their disposal. The Relative Strength Index, or RSI, is one of the best ways to determine which stocks are oversold.

Using a scale from 0 to 100, the RSI measures how quickly a stock’s offer is rising or falling relative to the broader market. Readings above 70 and below 30 are considered overbought and oversold, respectively.

In the S&P 500, 79 companies are currently technically oversold. Only 31 have scores less than 30 for the RSI.

Focusing on the oversold group, here are three of the more optimistic names for Wall Street firms:

Is Paypal Stock Oversold?

PayPal (NASDAQ: PYPL) rows 11NS Among the components of the S&P 500 in terms of the RSI is a reading of 23. After a return of 117% last year, the stock’s return of minus 12% year-to-date lags significantly behind the index. Analysts, which is currently considered a lag, say the online payment platform will soon return to being a leader.

Paypal this week posted better-than-expected third-quarter earnings but fell short of revenue. The results were overshadowed by a poor fourth-quarter revenue forecast and a weak outlook for 2022. Not even a new partnership with Amazon could prevent PayPal’s stock from plunging to a 52-week low. Paypal has announced that US shoppers will be able to use its Venmo platform to make purchases from Amazon early next year.

While there has been a scattering of hold ratings and even one sell rating issued on the street, 20 companies have reiterated their buy ratings since the third quarter update. The most bullish, Evercore ISI, has set a price target of $342, which is a 67% rise. In general, analysts prefer fundamental trends in PayPal payment volumes which should only improve with the Amazon deal. Lukewarm guidance also sets the stock for some rhythm and lifts the seasons in 2022.

Is dish net stock a long-term purchase?

Dish Network (NASDAQ: DISH) Its 23 RSI score places it 8NS In the list of best-selling stocks in the S&P 500. The provider of Sling and other pay-TV services is up 14% this year but is down 24% from its peak in May 2021. Sell-side research firms say the stock’s bear market has created an attractive buying opportunity.

In the past three months, five analysts shared an updated opinion on Dish Network. All five described the stock as a buy with price targets ranging from $50 to $71. Deutsche Bank this week presented a target of $71 indicating potential weakness from here. Following the company’s third quarter report, the analyst noted a positive long-term impact of the planned $4 billion new wireless spectrum asset purchase from Dish Network.

The market has so far reacted negatively to Dish Network’s latest investment as it will issue $4 billion in debt to fund the purchase. That will weaken its balance sheet in the near term, but ultimately put it in a better competitive position in the battle with AT&T, T-Mobile and Verizon to build 5G networks nationwide. Partnerships with Qualcomm and many other 5G players should be a boon to Dish Network’s long-term independent ambitions for 5G.

Is Caesars Entertainment’s Falling Stock a Buying Opportunity?

Caesars Entertainment (NASDAQ: CZR) It has actually outperformed the S&P 500 index this year. But after hitting a record high of $120 last month, the casino operator’s shares are down 16%. In the process, the stock’s daily RSI reading fell below 30 for the first time since the depths of the March 2020 low.

Analysts say this has created a buying opportunity for a company that has been experiencing solid growth since the reopening of 52 US properties. Since Caesars Entertainment reported inline third-quarter results earlier this month, four companies have described the stock as a buy. Well Fargo raised its price target to $145, citing Caesars’ growing market share in the US sports betting market and ongoing digital investments. Jefferies this week reiterated the buy rating citing a potential benefit from reopening Hong Kong’s borders to Macau’s business.

This week, the up-and-coming sports betting division of Caesars announced a partnership with Archie, Peyton, Eli and Cooper Manning to promote the Caesars Sportsbook product. Sportsbook operates in 20 US states and territories making Caesars the largest retail sportsbook operator in the country. Given the positives of expanding into new domestic and international markets, Caesars Entertainment looks like a good bet at current levels.

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