A Trio of Software Stocks that Could Be Looking at Pullbacks
Over the last few weeks I have found myself looking for possible bearish investments. The rallies off the March lows and then after the little hiccups we saw in September and October have put the four main U.S. indices in overbought territory based on the weekly RSI and weekly stochastic indicators. The S&P, Nasdaq, and Russell are all showing overbought readings on their monthly RSI and stochastic indicators as well. The Dow’s stochastic indicators are in overbought territory, but the RSI isn’t there just yet.
If we use the Sector Select SPDRs as a proxy for each of the sectors and we look at the overbought/oversold indicators for them, we see a number of overbought readings. All but the utilities sector and real estate sectors are in overbought territory based on their weekly stochastic indicators. Only five of the 11 have 10-week RSI readings in overbought territory. That’s using the 70 level as the threshold for overbought. Eight of the 11 have RSI readings above 65, so several of the ones that aren’t overbought are close.
Because of the current situation, I have been looking for specific stocks that I think are ripe for downturns. Stocks that don’t have the best fundamentals, but have gone up with the overall market and have elevated overbought/oversold indicators.
Something that stood out in my search was a trio of software stocks with poor fundamental indicators and high readings on their weekly OB/OS indicators. I found these stocks when I searched for ones that have seen their weekly stochastic indicators make bearish crossovers in the last few weeks. Box, Inc. (BOX), Dropbox, Inc. (DBX), and Twilio (TWLO) all three showed up on that search.
Once I saw the stocks on the search, I pulled them up on Tickeron’s Fundamental Analysis screener and found that Twilio was rated as a “strong sell”. Box and Dropbox both have “sell” ratings.
Looking at the fundamental indicators, Twilio has zero positive signals and five negative readings. Dropbox and Box both have one positive signal and four negative ones. For Dropbox, its SMR rating is the only one that is positive. For Box, the seasonality score is positive, but even that isn’t a real strong reading.
There are three areas where all three stocks get poor ratings. All three have really bad scores in the P/E Growth ratings and bad scores on their Profit vs. Risk and Outlook Ratings. Twilio and Dropbox both get 100 on the Profit vs. Risk rating and that is the worst score a stock can get.
Looking at their charts, the trend on Box stood out to me. The stock has been trending lower since peaking in 2018. A trend channel has formed that defines the various cycles within the overall downward trend and the stock hit the upper rail a few weeks ago. We also see how the stochastic indicators made a bearish crossover this week.
The complete analysis from Tickeron appears below. It shows how the stocks compare to one another and how they stack up against other companies.
BOX in upward trend: 10-day moving average crossed above 50-day moving average on June 29, 2026
The 10-day moving average for BOX crossed bullishly above the 50-day moving average on June 29, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 26, 2026. You may want to consider a long position or call options on BOX as a result. In of 78 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for BOX just turned positive on June 29, 2026. Looking at past instances where BOX's MACD turned positive, the stock continued to rise in of 52 cases over the following month. The odds of a continued upward trend are .
BOX moved above its 50-day moving average on June 26, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BOX advanced for three days, in of 297 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BOX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
BOX broke above its upper Bollinger Band on July 01, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for BOX entered a downward trend on July 01, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (14.279). P/E Ratio (45.000) is within average values for comparable stocks, (71.237). Projected Growth (PEG Ratio) (0.583) is also within normal values, averaging (1.890). BOX has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.022). P/S Ratio (3.503) is also within normal values, averaging (135.479).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. BOX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BOX’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a platform for content storage, sharing, and collaboration
Industry ComputerCommunications
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