Highly liquid company stocks are driving the indices up, with MasterCard ($MA, 392.02) rising 1.3% on Thursday
Stocks are experiencing a positive trend, with the S&P 500 and Nasdaq Composite surging 0.94% and 1.51% respectively, reaching their highest closing levels since August. The Dow Jones Industrial Average also saw a rise of over 115 points, or 0.34%.
These gains on Thursday have further increased the weekly performance of the major averages, with the Nasdaq up 3.3% and the S&P on track to end the week 1.8% higher. Both indices are set to achieve their best weekly performance since March 31. The Dow has gained 0.7%.
Currently, the stocks of high-liquidity giants are mainly driving the market, while second-tier stocks, which are also heavily present in our robot's assets, are lagging behind. However, it is likely that the upward trend will continue, and money will start flowing into lower-liquidity stocks, which will increase volatility and profitability.
For instance, it is worth highlighting the performance of MasterCard stocks, which rose 1.3% yesterday, and the upward trend is ongoing.
Based on a +3.04% 3-day advance, it is estimated that the price will continue to grow. Historical data shows that in 231 out of 344 cases where MA advanced for three consecutive days, the price further increased within the following month. The chances of a continued upward trend are at 67%.
Additionally, the Aroon Indicator has entered an uptrend today. In 230 out of 360 cases where MA Aroon's Indicator entered an uptrend, the price continued to rise within the following month. The odds of a continued uptrend are at 64%.
MA in upward trend: price may ascend as a result of having broken its lower Bollinger Band on May 23, 2023
MA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 39 cases where MA's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
MA moved above its 50-day moving average on May 25, 2023 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 MA advanced for three days, in of 345 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 369 cases where MA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for MA moved out of overbought territory on May 19, 2023. 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 46 similar instances where the indicator moved out of overbought territory. In of the 46 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on May 22, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on MA as a result. In of 84 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 MA turned negative on May 22, 2023. 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 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MA 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)
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 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 83, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MA’s price grows at a higher 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 significantly 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: MA's P/B Ratio (66.667) is very high in comparison to the industry average of (3.868). P/E Ratio (37.453) is within average values for comparable stocks, (29.177). Projected Growth (PEG Ratio) (1.506) is also within normal values, averaging (1.405). MA has a moderately low Dividend Yield (0.006) as compared to the industry average of (0.049). P/S Ratio (15.823) is also within normal values, averaging (5.588).
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
