Possible Double-Top for American Homes 4 Rent After Double-Bottom
Real Estate Investment Trust American Homes 4 Rent (NYSE: AMH) has a very interesting looking chart at this point in time. The stock looks like it put in a double-bottom down in the $19.50 area. The stock dropped down there in early November then bounced up to the $20.75 area. It then dropped back down to the $19.50 area and rallied once again. When it broke above the $20.75 area it was confirmation of the double-bottom pattern. Unfortunately we could also be looking at a double-top pattern.
The way the stock stalled in the $21.40 area in late October catches your attention and now it has bounced back up to the area again and stalled there on Friday. We also see that the stochastic readings are in overbought territory and made a bearish crossover on Friday.
The company’s fundamental indicators are average at best and that isn’t going to help the company break above resistance. The earnings have been stagnant over the last three years. The return on equity is only 1.7% and the profit margin is only 8%.
One area where the fundamental indicator is above average is in the sales growth. The company has averaged sales growth of 20% per year over the last three years and they were up 13% in the most recent quarter.
The sentiment toward American Homes 4 Rent could also be a problem as investors and analysts appear to be skewed to the optimistic side. The short interest ratio is a paltry 1.36 and nine out of 15 analysts rate the stock as a “buy”.
AMH in upward trend: price may jump up because it broke its lower Bollinger Band on July 02, 2025
AMH 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 34 cases where AMH'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 suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 55 cases where AMH'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 .
The Moving Average Convergence Divergence (MACD) for AMH just turned positive on July 11, 2025. Looking at past instances where AMH's MACD turned positive, the stock continued to rise in of 53 cases over the following month. 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 AMH advanced for three days, in of 295 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on June 25, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on AMH as a result. In of 92 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
AMH moved below its 50-day moving average on June 04, 2025 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for AMH crossed bearishly below the 50-day moving average on June 11, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 22 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 AMH 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 AMH entered a downward trend on July 11, 2025. 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 Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is seriously undervalued 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. AMH’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
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 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 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: P/B Ratio (1.909) is normal, around the industry mean (1.997). P/E Ratio (35.980) is within average values for comparable stocks, (63.028). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (6.654). AMH has a moderately low Dividend Yield (0.025) as compared to the industry average of (0.070). P/S Ratio (8.110) is also within normal values, averaging (7.058).
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General Information
an operator of residential homes
Industry RealEstateInvestmentTrusts
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