Sally Beauty (SBH, $22.03) gets rating upgrades from two analysts
On Tuesday, Sally Beauty got ratings boost and price target hikes from some analysts.
Cowen analyst Oliver Chen raised the beauty retail company’s shares to outperform from market perform. Chen boosted his price target to $30 from $28.
The analyst cited “favorable hair and salon trends” and Sally Beauty's “structural modernization efforts” as factors that should eventually lead to improved brand awareness and earnings growth. According to him, tailwinds to the company included COVID-19-driven do-it-yourself at-home trends yielding about 20% color category growth.
Chen indicated that Sally Beauty is emerging from the pandemic as a stronger retailer on the back of its digital offerings, improving store experience on rehabs, and strategic store closures.
Oppenheimer analyst Rupesh Parikh raised rating on Sally Beauty shares to outperform from perform, with a $24 price target. Parikh said that the over 20% pullback in the shares from recent May highs creates an attractive entry point for "value players." Sally Beauty has sustainable earnings per share power in at least the $2.35 range, according to Parikh.
SBH's Indicator enters downward trend
The Aroon Indicator for SBH entered a downward trend on May 04, 2022. 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 227 similar instances where the Aroon Indicator formed such a pattern. In 190 of the 227 cases the stock moved lower. This puts the odds of a downward move at 84%.
Current price $15.12 is below $18.16 the lowest resistance line found by A.I. Throughout the month of 04/12/22 - 05/13/22, the price experienced a -5% Downtrend, while the week of 05/06/22 - 05/13/22 shows a +0.53% Uptrend.
The Moving Average Convergence Divergence Histogram (MACD) for SBH turned negative on May 06, 2022. 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 55 similar instances when the indicator turned negative. In 42 of the 55 cases the stock turned lower in the days that followed. This puts the odds of success at 76%.
SBH moved below its 50-day Moving Average on May 04, 2022 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SBH declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 76%.
SBH broke above its upper Bollinger Band on April 21, 2022. 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 Stochastic 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 upward trend is expected.
The Momentum Indicator moved above the 0 level on May 13, 2022. You may want to consider a long position or call options on SBH as a result. In 66 of 95 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 69%.
Following a +7.38% 3-day Advance, the price is estimated to grow further. Considering data from situations where SBH advanced for three days, in 212 of 322 cases, the price rose further within the following month. The odds of a continued upward trend are 66%.
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 77%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.45.
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. SBH’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 76, placing this stock worse than average.
The Tickeron PE Growth Rating for this company is 88 (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 Price Growth Rating for this company is 77 (best 1 - 100 worst), indicating slightly worse than average price growth. SBH’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 64 (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 (5.956) is normal, around the industry mean (8.199). P/E Ratio (6.605) is within average values for comparable stocks, (25.644). SBH's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.446). SBH has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.028). P/S Ratio (0.439) is also within normal values, averaging (31.265).
The Tickeron Seasonality Score of 50 (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 SMR rating for this company is 8 (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 specialty stores sector includes companies dedicated to the sale of retail products focused on a single product category, such as clothing, carpet, books, or office supplies. A specialty store could face intense competition from big-box departmental chains, and therefore offering an adequate collection of the product type it specializes in is key in maintaining/growing its market.
The average market capitalization across the Specialty Stores Industry is 6.6B. The market cap for tickers in the group ranges from 48 to 305.9B. HD holds the highest valuation in this group at 305.9B. The lowest valued company is CALI at 48.
The average weekly price growth across all stocks in the Specialty Stores Industry was -1.63%. For the same Industry, the average monthly price growth was -8.96%, and the average quarterly price growth was -19.46%. MSSV experienced the highest price growth at 89.26%, while PRTY experienced the biggest fall at -54.25%.
- 5/10/22 5:36 AM: Sally Beauty Holdings (SBH, $14.8) was a top loser this week, declining -8.02%. Expect a Downtrend continuation
- 5/4/22 8:26 AM: Sally Beauty Holdings (SBH, $16.58) was a top weekly gainer, with a +8.58% jump
- 4/27/22 5:34 AM: Sally Beauty Holdings (SBH, $15.27) was a top loser this week, declining -5.16%
The average weekly volume growth across all stocks in the Specialty Stores Industry was 46.47%. For the same stocks of the Industry, the average monthly volume growth was 54.26% and the average quarterly volume growth was 28.14%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the Aroon Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 42%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.33.
40 stocks in the group of tickers exhibit a similar negative trend based on the TrendWeek indicator with an average likelihood of 75%.
The most notable companies in this group are Costco Wholesale Corp (NASDAQ:COST), Target Corp (NYSE:TGT), AutoZone (NYSE:AZO), Tractor Supply Company (NASDAQ:TSCO), Ulta Beauty (NASDAQ:ULTA), Advance Auto Parts (NYSE:AAP), RH (NYSE:RH), Just Eat Takeaway.com NV (OTC:JTKWY), Signet Jewelers Limited (NYSE:SIG), Bed Bath & Beyond (NASDAQ:BBBY).
The average market capitalization across the group is 7B. The market cap for tickers in the group ranges from 0 to 220.4B. COST holds the highest valuation in this group at 220.4B. The lowest valued company is INSHF at 0.
The average weekly price growth across all stocks in the group was -3.05%. For the same group, the average monthly price growth was -11.54%, and the average quarterly price growth was -21.41%. WINH experienced the highest price growth at 52%, while PRTY experienced the biggest fall at -54.25%.
- 5/14/22 4:23 AM: Vroom (VRM, $1.6) is a top weekly gainer for penny stocks, rising +18.52%
- 5/14/22 4:22 AM: Community Redevelopment (CRDV, $1.58) was a top weekly gainer, with a +5.33% jump
- 5/12/22 5:38 AM: Jiuzi Holdings (JZXN, $1) is a top weekly loser for penny stocks, falling -25.93%
The average weekly volume growth across all stocks in the group was 51.2%. For the same stocks of the group, the average monthly volume growth was 126.98% and the average quarterly volume growth was 256.48%
- 5/14/22 4:17 AM: The volume for Vroom stock increased for three consecutive days, resulting in a record-breaking daily growth of 191% of the 65-Day Volume Moving Average
- 5/12/22 5:33 AM: The volume for Vroom stock increased for one day, resulting in a record-breaking daily growth of 283% of the 65-Day Volume Moving Average
- 5/11/22 7:40 AM: The volume for Party City Hold stock increased for one day, resulting in a record-breaking daily growth of 321% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows