In the realm of swing trading, even amidst choppy market conditions, some stocks emerge as clear winners. One such stock, Workhorse Group Inc. (WKHS), has yielded impressive results, with a 26.15% return under a market-neutral strategy combining technical analysis (TA) and fundamental analysis (FA).
The Moving Average Convergence Divergence (MACD) is a crucial indicator that swing traders use to identify potential price swings. MACD involves a comparison of two moving averages of a security's price, namely a "fast" and a "slow" moving average. When the MACD crosses above the signal line, it often indicates an upward trend.
WKHS's MACD crossed above the signal line on July 03, 2023, suggesting a bullish trend. This event has historically been a reliable predictor of an upward swing for WKHS. To quantify, there have been 41 past instances where the MACD for WKHS turned positive, and in 36 of those instances, the stock continued its upward trajectory over the following month. This consistency gives us a confidence level of approximately 88% that WKHS will maintain its upward momentum, presenting a potentially profitable opportunity for swing traders.
To put it into perspective, an 88% confidence level is a significant statistic in a field where strategies and decisions are typically data-driven. It is noteworthy to mention that while past performance is not a guaranteed predictor of future returns, it does provide substantial insights into potential trends and patterns.
Moreover, WKHS's substantial return of 26.15% is a testament to the effectiveness of the market-neutral strategy (TA&FA). This strategy aims to minimize market risk by being equally invested in long and short positions, thus profiting from both rising and falling markets.
The positive MACD crossover for WKHS, coupled with an 88% probability of a continued upward trend, offers a promising outlook for the stock. The significant return generated by this popular stock under the market-neutral strategy further emphasizes its potential as an advantageous pick for swing traders. However, like any trading strategy, continuous monitoring and reassessment of the market conditions is vital to ensure sustained success.
The Aroon Indicator for WKHS entered a downward trend on September 21, 2023. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 269 similar instances where the Aroon Indicator formed such a pattern. In of the 269 cases the stock moved lower. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on September 01, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on WKHS as a result. In of 73 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent 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 WKHS 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 RSI Indicator shows that the ticker has stayed in the oversold zone for 6 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 Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 13 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 WKHS advanced for three days, in of 262 cases, the price rose further within the following month. The odds of a continued upward trend are .
WKHS 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (0.855) is normal, around the industry mean (6.743). P/E Ratio (3.200) is within average values for comparable stocks, (20.678). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (5.664). WKHS has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.040). P/S Ratio (6.849) is also within normal values, averaging (52.056).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. WKHS’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 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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 that the returns do not compensate for the risks. WKHS’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 85, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufactures of high performance, medium duty trucks
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|Goldman Sachs Small Cap Eq Insghts R6|
|State Street Instl Small-Cap Equity Inv|
|Invesco Dividend Income R5|
|Fisher IIG ESG Stck for Ret Plns|
|Invesco Global Infrastructure A|
A.I.dvisor indicates that over the last year, WKHS has been loosely correlated with RIVN. These tickers have moved in lockstep 52% of the time. This A.I.-generated data suggests there is some statistical probability that if WKHS jumps, then RIVN could also see price increases.