Bearish Signal Generated on HUYA With 88% Confidence Level
The packaged software industry has performed extremely well in recent weeks and that has caused a number of the stocks to hit overbought territory on their daily charts. A number of the stocks have gained 15% or more in the past month while the S&P 500 is only up 3.7%.
One software company that has lagged the others and lagged the market is HUYA Inc. (HUYA). The stock has risen in the last few weeks and the daily stochastic indicators reached overbought territory in the last few days. HUYA dropped on December 22 and that caused a bearish crossover in the stochastic indicators.
Tickeron’s A.I.dvisor generated a bearish signal on December 22 as well. That signal shows a confidence level of 88% that the stock will move lower by at least 4% within the next month.
When we look at the daily chart we see that the stock hit resistance at its 50-day moving average. We also see that a downwardly sloped trend channel has formed on the chart over the last three months. The upper rail of the channel is just below the 50-day at this time.
If we look at the Tickeron screener, the Chinese gaming platform has one bullish indicator, three bearish indicators, and two neutral indicators. The Outlook Rating is a 7 and that is the one bullish signal. The Profit vs. Risk Rating is a 100 and that is the worst possible rating a company can get. The P/E Growth Rating is a 92 and the SMR Rating is an 83 and those are the other two bearish indicators.
Looking at the SMR Rating in particular, the sales growth has been above average, but the profit margin and return on equity are below average and that drags the overall rating down.
The full breakdown of how HUYA stacks up against other stocks and which indicators have generated signals from Tickeron’s AI platform follows.
HUYA in -7.58% downward trend, declining for three consecutive days on May 25, 2023
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where HUYA declined for three days, in of 327 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 56 cases where HUYA's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The 50-day moving average for HUYA moved below the 200-day moving average on May 16, 2023. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
HUYA broke above its upper Bollinger Band on May 15, 2023. 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.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where HUYA's RSI Indicator exited the oversold zone, of 39 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 26, 2023. You may want to consider a long position or call options on HUYA as a result. In of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
HUYA moved above its 50-day moving average on May 26, 2023 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for HUYA crossed bullishly above the 50-day moving average on May 26, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 12 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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HUYA advanced for three days, in of 268 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 150 cases where HUYA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
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. HUYA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued 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 (0.513) is normal, around the industry mean (4.218). P/E Ratio (23.041) is within average values for comparable stocks, (72.015). Projected Growth (PEG Ratio) (0.789) is also within normal values, averaging (2.646). HUYA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.058). P/S Ratio (0.648) is also within normal values, averaging (110.239).
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.
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. HUYA’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 89, placing this stock worse than average.
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Fundamental Analysis Ratings
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