Chemical manufacturer Olin finds support at 50-day
Olin Corp (NYSE: OLN) manufactures specialty chemicals like chlorine products, epoxies, and vinyl products. The company doesn’t have the best fundamental indicators, but stock moved sharply higher since the December low before pulling back in the last few weeks.
We see on the daily chart that the stock gained over 50% from its low through the high on February 21. Since that time the stock has pulled back approximately 11% but appears to have found support at its 50-day moving average.
The daily stochastic readings went from overbought to oversold during the recent pullback. The indicators did make a bullish crossover on March 7 and that could be a good sign for the stock.
The Tickeron AI Trend Prediction tool generated a bullish signal on March 6 and that signal calls for a gain of at least 4% over the next month. The signal showed a confidence level of 89% and previous predictions have been accurate 65% of the time.
Olin’s fundamentals are a mixture of above average results and below average. Earnings have grown by an average of 159% per year over the last three years while sales grew by 27% per year. Unfortunately in the most recent quarter earnings only grew by 7% and sales only grew by 1%.
The management efficiency and profitability measurements are below average with an ROE of 11.7% and a profit margin of only 1.9%.
OLN's RSI Indicator stays in oversold zone for 1 day
It is expected that a price bounce should occur soon.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 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.
The 10-day moving average for OLN crossed bullishly above the 50-day moving average on September 25, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 14 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 OLN advanced for three days, in of 321 cases, the price rose further within the following month. The odds of a continued upward trend are .
OLN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 18, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on OLN as a result. In of 80 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 OLN turned negative on October 10, 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 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
OLN moved below its 50-day moving average on October 25, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where OLN 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 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly undervalued 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 low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock 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 (3.198) is normal, around the industry mean (3.589). P/E Ratio (16.714) is within average values for comparable stocks, (33.984). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (6.035). Dividend Yield (0.013) settles around the average of (0.037) among similar stocks. P/S Ratio (1.125) is also within normal values, averaging (91.875).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a 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 Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. OLN’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
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General Information
a company which engages in manufacturing and distributing the chemicals products
Industry ChemicalsSpecialty