The use of AI trading robots has gained traction among investors, promising improved efficiency and potentially higher returns. In the case of Swing Trader's Popular Stocks: Short Bias Strategy (TA&FA) bot, the previous week's performance revealed a notable gain of +6.34% while trading PBR (Petroleo Brasileiro S.A.). However, the recent earnings report and technical indicators call for a closer analysis of the stock's prospects.
One significant technical indicator to consider is the 10-day Relative Strength Index (RSI) Oscillator, which provides insights into a stock's overbought or oversold conditions. On June 27, 2023, the 10-day RSI for PBR moved out of overbought territory, indicating a potential shift from an upward trend to a downward trend. Traders may interpret this as a signal to sell the stock or consider buying put options. Tickeron's A.I.dvisor examined 43 instances where the RSI moved out of the overbought zone, and in 34 of those cases, the stock moved lower in the following days. These statistics suggest a considerable 79% likelihood of a downward move.
Earnings Report Analysis:
It is essential to analyze the fundamental aspects of a stock to gauge its long-term viability. The most recent earnings report for PBR was released on May 11, which revealed earnings per share (EPS) of 56 cents, falling short of the estimated 90 cents. This discrepancy may raise concerns among investors as it indicates a potential underperformance of the company relative to expectations. With 9.45 million shares outstanding, the current market capitalization stands at approximately $85.95 billion.
While Swing Trader's AI trading robots demonstrated an impressive gain of +6.34% during their trades on PBR, caution should be exercised in light of the recent earnings report and technical indicators. The shift from overbought to potentially oversold conditions, as indicated by the 10-day RSI Oscillator, suggests a higher probability of a downward move. Additionally, the disappointing earnings per share figures compared to estimates highlight a potential mismatch between market expectations and the company's performance.
PBR broke above its upper Bollinger Band on September 14, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 37 similar instances where the stock broke above the upper band. In of the 37 cases the stock fell afterwards. This puts the odds of success at .
The 10-day RSI Indicator for PBR moved out of overbought territory on September 15, 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 43 similar instances where the indicator moved out of overbought territory. In of the 43 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 62 cases where PBR's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for PBR turned negative on September 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 42 similar instances when the indicator turned negative. In of the 42 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 PBR 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 Momentum Indicator moved above the 0 level on August 18, 2023. You may want to consider a long position or call options on PBR as a result. In of 79 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
PBR moved above its 50-day moving average on August 22, 2023 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for PBR crossed bullishly above the 50-day moving average on August 24, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher 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 PBR advanced for three days, in of 339 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 253 cases where PBR Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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 76, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued 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 (1.279) is normal, around the industry mean (1.114). P/E Ratio (3.250) is within average values for comparable stocks, (17.062). Projected Growth (PEG Ratio) (1.836) is also within normal values, averaging (4.065). Dividend Yield (0.243) settles around the average of (0.101) among similar stocks. P/S Ratio (0.876) is also within normal values, averaging (1.124).
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 Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. PBR’s price grows at a higher 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 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 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 average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a company which engages in exploration, refining and processing of oil and natural gas
A.I.dvisor indicates that over the last year, PBR has been loosely correlated with YPF. These tickers have moved in lockstep 54% of the time. This A.I.-generated data suggests there is some statistical probability that if PBR jumps, then YPF could also see price increases.