Express (EXPR, $0.67) recently announced an agreement to purchase Bonobos at a significant discount from Walmart, causing its stock price to rise by 20%. While this may seem like a positive development, technical analysis suggests that traders may want to exercise caution when it comes to investing in EXPR.
On April 5, 2023, the Moving Average Convergence Divergence Histogram (MACD) for EXPR turned negative, which is typically a sign that the stock may turn lower in the coming weeks. Traders may want to consider selling the stock or buying put options as a result.
Tickeron's A.I.dvisor also looked at 43 similar instances when the MACD turned negative, and in 38 of those cases, the stock turned lower in the days that followed. This puts the odds of success at 88%.
In addition to technical analysis, it's important to consider the company's recent earnings results. In the fourth quarter of 2022, Express reported a net loss of $65.3 million, or $1.04 per share. This was an improvement from the same period in the previous year, where the company reported a net loss of $90.3 million, or $1.45 per share. However, the company's revenue also decreased by 7.5% to $552.7 million, compared to the previous year.
While the company's earnings results show some improvement, they also highlight the challenges that Express is facing. The COVID-19 pandemic has had a significant impact on the retail industry, and many brick-and-mortar stores are struggling to compete with online retailers. In addition, Express has faced increased competition from fast fashion retailers such as H&M and Zara.
While the announcement of Express's agreement to purchase Bonobos may have caused its stock price to rise, technical analysis suggests that traders may want to exercise caution when investing in EXPR. The MACD turning negative and the odds of success from similar instances, coupled with the challenges that the company is facing, suggest that the stock may turn lower in the coming weeks.
EXPR saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on May 15, 2023. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 41 instances where the indicator turned negative. In of the 41 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on May 19, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on EXPR as a result. In of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
EXPR moved below its 50-day moving average on May 24, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for EXPR crossed bearishly below the 50-day moving average on May 22, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 12 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 EXPR 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 EXPR entered a downward trend on June 09, 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 points to a transition from a downward trend to an upward trend -- in cases where EXPR's RSI Indicator exited the oversold zone, of 44 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 68 cases where EXPR'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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where EXPR advanced for three days, in of 247 cases, the price rose further within the following month. The odds of a continued upward trend are .
EXPR 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 SMR rating for this company is (best 1 - 100 worst), indicating very 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 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 (0.191) is normal, around the industry mean (4.676). P/E Ratio (0.177) is within average values for comparable stocks, (110.063). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (4.551). EXPR has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.038). P/S Ratio (0.024) is also within normal values, averaging (1.886).
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. EXPR’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 81, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a specialty apparel and accessory retailer
A.I.dvisor indicates that over the last year, EXPR has been loosely correlated with ZUMZ. These tickers have moved in lockstep 49% of the time. This A.I.-generated data suggests there is some statistical probability that if EXPR jumps, then ZUMZ could also see price increases.
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