NortonLifeLock (NLOCK, $21.76) shares upgraded to outperform from neutral, by Baird analyst

NortonLifeLock  got a rating boost from Baird analyst Jonathan Ruykhaver, on strong customer demand.

Ruykhaver raised his rating on the cybersecurity company to outperform from neutral. He lifted his price target for Norton shares to $25 from $24. 

Ruykhaver mentioned that NortonLifeLock  made “significant progress” with reducing “stranded costs”. He also emphasized that customer count has grown for two quarters in a row, after it ceded 1.1 million customers in the two years until the quarter that ended at the beginning of October.

The analyst also said that the company has benefitted since selling its enterprise security unit to Broadcom  in 2019 (as reported by Bloomberg).

Technical Analysis (Indicators)

Bearish Trend Analysis

The RSI Indicator appears to be shifting from an Uptrend to a Downtrend. In 2 of 8 cases where NLOK's RSI indicator exited the overbought zone, the price fell further within the following month. The odds of a continued Downtrend are 25%.

The Stochastic Indicator may be shifting from an Uptrend to a Downtrend. In 2 of 7 cases where NLOK's Stochastic indicator exited the overbought zone, the price fell further within the following month. The odds of a continued Downtrend are 29%.

The Moving Average Convergence Divergence (MACD) crossed below the signal line. In 1 of 3 cases where NLOK's MACD histogram became negative, the price fell further within the following month. The odds of a continued Downtrend are 33%.

Bullish Trend Analysis

The Momentum Indicator exceeded the 0 level on May 28, 2020. Traders may consider buying the ticker or exploring call options. In 5 of 5 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 90%.

The Aroon Indicator entered an Uptrend today. In 28 of 39 similar cases where NLOK Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 72%.

Fundamental Analysis (Ratings)

Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 37%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.08.

The Tickeron PE Growth Rating for this company is 100 (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 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. NLOK’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 79, placing this stock worse than average.

The Tickeron Valuation Rating of 84 (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: NLOK's P/B Ratio (1239.69) is very high in comparison to the industry average of (16.00). P/E Ratio (4.31) is within average values for comparable stocks, (157.26). Projected Growth (PEG Ratio) (0.01) is also within normal values, averaging (5.66). NLOK has a moderately high Dividend Yield (2.19) as compared to the industry average of (0.43). P/S Ratio (3.55) is also within normal values, averaging (12.24).

The Tickeron Price Growth Rating for this company is 47 (best 1 - 100 worst), indicating fairly steady price growth. NLOK’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 23 (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.

Contributor

Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.