Dana (DAN) finds support at its 50-day before turning higher
Auto parts manufacturer Dana (NYSE: DAN) pulled back over the last few weeks, but it looks as though the 50-day moving average halted the pullback last Thursday and now the stock looks to be turning higher again.
The stock jumped sharply from the December low, gaining over 65% in just two months. The stock peaked at $20.83 on February 25 and then pulled back to a low of $17.86 last week. The 50-day moving average was just below that level and still climbing.
The daily stochastic readings for Dana dropped sharply during the two-week pullback, moving from overbought territory to oversold territory. Now the indicators have turned higher and have made a bullish crossover.
The Tickeron AI Trend Prediction tool generated a bullish signal on March 15 and that signal called for a gain of at least 2% for the coming week. The signal showed a confidence level of 55% and the previous predictions on Dana have been accurate 75% of the time.
Personally, I can see the stock bounce back up above the $20.80 level and that would be good for a gain of almost 12%. That probably won’t happen in the next week, but perhaps within the next month.
Dana’s fundamentals are pretty good with annual growth in earnings averaging 26% over the last three years while sales have increased at a rate of 14% per year. The company also shows a return on equity of 36.9% and a profit margin of 6.9%.
DAN in upward trend: 10-day moving average crossed above 50-day moving average on October 07, 2024
The 10-day moving average for DAN crossed bullishly above the 50-day moving average on October 07, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 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 .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where DAN's RSI Oscillator exited the oversold zone, of 41 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The Momentum Indicator moved above the 0 level on September 23, 2024. You may want to consider a long position or call options on DAN as a result. In of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for DAN just turned positive on September 18, 2024. Looking at past instances where DAN's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
DAN moved above its 50-day moving average on October 10, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DAN advanced for three days, in of 316 cases, the price rose further within the following month. The odds of a continued upward trend are .
DAN 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
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DAN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Fundamental Analysis (Ratings)
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 75%.
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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued 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 (1.163) is normal, around the industry mean (11.943). P/E Ratio (48.615) is within average values for comparable stocks, (44.409). DAN's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (0.959). Dividend Yield (0.032) settles around the average of (0.030) among similar stocks. P/S Ratio (0.173) is also within normal values, averaging (26.858).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. DAN’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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DAN’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 84, placing this stock worse than average.
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Fundamental Analysis Ratings
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General Information
a supplier of driveline, sealing, and thermal-management technologies
Industry AutoPartsOEM