In the unpredictable world of penny stocks, even the most seasoned traders can find themselves on shaky ground. This week, Innoviz Technologies (INVZ) experienced a significant dip, tumbling 16.45% to land it as a top weekly loser among penny stocks.
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The Bigger Picture: Auto Parts: OEM Industry
With an average market capitalization of $4.51B, the Auto Parts: OEM Industry spans a broad spectrum. Denso Corp (DNZOY) commands the highest market valuation at $48.74B, whereas JBZY is the lowest valued company, sitting at a mere $206. This vast range exemplifies the diversity within the industry.
On the surface, the industry seems to be in a negative trend, with the average weekly price growth at -2%. However, over a longer period, the numbers paint a slightly different picture. The monthly and quarterly price growth sit at 1% and 8%, respectively, indicating a more positive overall performance. The industry’s standout growth was FFLO, which had a substantial price growth of 83%, in stark contrast to ATHHF, which experienced a severe fall of -87%.
Trading Volume: A Concerning Trend?
The Auto Parts: OEM Industry experienced a dramatic decline in trading volume this week, with an average decrease of 83%. The monthly and quarterly volume growth also dipped significantly, down by 49% and 48%, respectively. Such drastic reductions suggest a diminishing interest in these stocks, raising questions about future liquidity and market stability.
The INVZ Downtrend: A Closer Look
For INVZ, the negative trend was underlined by a critical technical indicator - the Moving Average Convergence Divergence (MACD) Histogram, which turned negative on June 21, 2023. Historically, a negative MACD Histogram is a bearish signal, hinting at potential further losses. Looking back at 32 instances where INVZ's MACD Histogram turned negative, in 28 cases, the stock price dropped in the following days. This puts the probability of further decline at a rather high 88%.
Navigating the volatile waters of the penny stock market can be treacherous, as Innoviz Technologies has recently experienced. Given the bearish signals and the industry trends, traders need to tread carefully with INVZ. While potential opportunities may arise from such volatility, they come with considerable risk. As always, comprehensive analysis and informed decision-making remain key to navigating these turbulent market conditions.
The Aroon Indicator for INVZ entered a downward trend on September 06, 2023. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 144 similar instances where the Aroon Indicator formed such a pattern. In of the 144 cases the stock moved lower. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on September 13, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on INVZ as a result. In of 64 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 INVZ turned negative on September 21, 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 35 similar instances when the indicator turned negative. In of the 35 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 INVZ 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 RSI Indicator 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 Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 10 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.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where INVZ advanced for three days, in of 157 cases, the price rose further within the following month. The odds of a continued upward trend are .
INVZ 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 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 (2.136) is normal, around the industry mean (3.069). P/E Ratio (0.000) is within average values for comparable stocks, (39.323). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.659). INVZ has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.034). INVZ's P/S Ratio (49.505) is very high in comparison to the industry average of (5.238).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. INVZ’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 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. INVZ’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 88, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
A.I.dvisor indicates that over the last year, INVZ has been loosely correlated with LAZR. These tickers have moved in lockstep 56% of the time. This A.I.-generated data suggests there is some statistical probability that if INVZ jumps, then LAZR could also see price increases.