LGI Homes, Inc. (LGIH), a renowned name in the housing market, has witnessed an encouraging surge in returns, owing to a successful implementation of the Swing Trader strategy. A well-executed amalgamation of Technical Analysis (TA) and Fundamental Analysis (FA) propelled this strategy, resulting in an impressive 25.96% increase in value for the firm.
The Sector Rotation strategy is a tactical asset allocation strategy, enabling traders to capitalize on the cyclical nature of the economy. It involves switching investments among various sectors based on certain economic indicators to benefit from market trends. By effectively leveraging this strategy, LGIH has managed to stay ahead of its peers in a volatile economic environment.
A fundamental part of this strategy is technical analysis. In the case of LGIH, recent trends indicate a possible upward movement for the stock price. This conjecture is based on Bollinger Bands, a common tool in technical analysis that traders use to understand the market's volatility and identify 'overbought' or 'oversold' conditions.
As per current indications, LGIH is all set to rebound above the lower band, potentially moving toward the middle band, a promising sign for investors and traders. This suggests that the stock could be undervalued at present, offering an enticing prospect for those considering buying the stock or exploring call options. This price movement implies a good entry point for investors to benefit from future price appreciation.
Alongside TA, the fundamental analysis component of the strategy involves evaluating the company's financial health and market position. LGIH, known for its leadership in the housing market, presents a compelling case for investors. The company's robust financials and promising future outlook reinforce the attractiveness of the stock, offering the potential for higher returns.
The impressive 25.96% returns generated by LGIH through the Swing Trader Sector Rotation strategy underscores the power of combining technical and fundamental analysis. It demonstrates how astute investment approaches can drive substantial returns, even amidst an unpredictable market. As LGIH continues to leverage these analytical tools, traders and investors can look forward to more lucrative opportunities. This analysis sets the stage for an optimistic future trajectory, highlighting the strength of LGIH's strategic approach.
LGIH moved below its 50-day moving average on August 16, 2023 date and that indicates a change from an upward trend to a downward trend. In of 42 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on September 13, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on LGIH as a result. In of 93 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for LGIH turned negative on September 15, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
The 10-day moving average for LGIH crossed bearishly below the 50-day moving average on August 18, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LGIH declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for LGIH entered a downward trend on September 20, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Indicator entered the oversold zone -- be on the watch for LGIH's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 5 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LGIH advanced for three days, in of 318 cases, the price rose further within the following month. The odds of a continued upward trend are .
LGIH may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 62, placing this stock slightly better than average.
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 (1.505) is normal, around the industry mean (5.787). P/E Ratio (12.690) is within average values for comparable stocks, (83.155). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.581). LGIH has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.043). P/S Ratio (1.202) is also within normal values, averaging (71.814).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. LGIH’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly weaker than average sales and a marginally profitable 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 average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of residential construction services
|MFs / NAME||Price $||Chg $||Chg %|
|Timothy Plan Israel Common Values C|
|Calvert International Equity C|
|Manning & Napier Disciplined Value I|
|New Zealand Dollar - Hong Kong Dollar|
|JPMorgan Mid Cap Equity R5|
A.I.dvisor indicates that over the last year, LGIH has been closely correlated with KBH. These tickers have moved in lockstep 84% of the time. This A.I.-generated data suggests there is a high statistical probability that if LGIH jumps, then KBH could also see price increases.