Boost Your Returns: $LGIH Swing Trading With 29.07% Yield via Sector Rotation
Exemplary Results: Swing Trader Sector Rotation Strategy (TA&FA) Boosts LGIH by 29.07%
The dynamic world of the stock market holds untapped potential for savvy traders who utilize well-calibrated strategies to exploit shifts in trends. A brilliant demonstration of this is seen in the case of LG Homes Inc. (LGIH), which experienced an impressive 29.07% surge owing to the Swing Trader: Sector Rotation Strategy, a powerful blend of technical analysis (TA) and fundamental analysis (FA).
This dramatic rise in LGIH's value was primarily catalyzed by the Moving Average Convergence Divergence (MACD) Histogram turning positive on July 14, 2023. This technical indicator measures momentum and trend direction, with a positive shift signaling potential upward price movement. Historically, when LGIH's MACD has turned positive, the stock has continued to rise in 44 out of 48 instances over the following month, giving a noteworthy 90% probability of a continued upward trend.
The utilization of MACD, combined with other elements of TA&FA, in the Swing Trader: Sector Rotation Strategy has evidently been instrumental in generating this robust return. As a strategy, sector rotation involves shifting investment assets from one sector of the economy to another, seeking to benefit from specific economic cycles. It helps traders and investors to optimize returns by aligning their portfolios with the best-performing sectors of the market.
LGIH's stunning 29.07% rise is a testament to the potential of the Swing Trader: Sector Rotation Strategy. Incorporating key indicators like MACD into this strategy provides traders with an increased understanding of market trends, allowing them to make more informed decisions and potentially capitalize on market movements.
This case study of LGIH underlines the power of smart strategy application in the realm of stock trading. By effectively amalgamating TA and FA, the Swing Trader: Sector Rotation Strategy has once again proven its capacity to generate robust returns, reminding traders of the inherent potential that can be tapped through astute market analyses and strategic maneuvering.
LGIH in -1.58% downward trend, declining for three consecutive days on October 10, 2024
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 LGIH declined for three days, in of 281 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for LGIH moved out of overbought territory on September 20, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for LGIH turned negative on September 26, 2024. 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 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
LGIH broke above its upper Bollinger Band on September 13, 2024. 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 Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 63 cases where LGIH's Stochastic Oscillator exited the oversold zone 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 October 18, 2024. You may want to consider a long position or call options on LGIH as a result. In of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The 50-day moving average for LGIH moved above the 200-day moving average on September 27, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LGIH advanced for three days, in of 305 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 222 cases where LGIH Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to 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 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 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 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 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 (1.453) is normal, around the industry mean (7.196). P/E Ratio (13.589) is within average values for comparable stocks, (103.177). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.437). LGIH has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.044). P/S Ratio (1.147) is also within normal values, averaging (88.859).
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. LGIH’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 50, placing this stock worse than average.
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Fundamental Analysis Ratings
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General Information
a provider of residential construction services
Industry Homebuilding