Harnessing the power of technical and financial analysis (TA&FA), the swing trader’s sector rotation strategy has recently yielded an impressive 27.71% return on Liberty Oilfield Services Inc. (LBRT). The company, an industry leader in hydraulic fracturing and other well-stimulation services has demonstrated a positive price trajectory, suggesting a strong potential for additional growth.
Over the course of three days, LBRT saw an impressive +5.49% advance, a trend the sector rotation strategy has capitalized upon. Historically, three-day advances have been a strong indicator of further price growth. When examining previous instances where LBRT advanced for three consecutive days, the data shows that in 271 out of 326 cases, or 83% of the time, the price continued to rise in the subsequent month.
Given this strong precedent, the data suggests that LBRT is poised for further growth. The swing trader’s sector rotation strategy has been particularly effective in leveraging these trends. By actively shifting investments to the most favorable industries or sectors, this strategy has been able to deliver strong returns.
Sector rotation strategies rely on the cyclical nature of the economy. Investors utilizing this approach anticipate changes in economic cycles and adjust their portfolios accordingly, rotating into sectors that are expected to outperform and out of sectors projected to underperform. The goal is to capitalize on the changing economic winds by investing in sectors that are poised for growth.
In the case of LBRT, the recent advancement represents a significant opportunity. With an 83% chance of continued growth over the next month, the company is well-positioned for investors using a sector rotation strategy.
The swing trader’s approach to sector rotation, which combines technical and financial analysis (TA&FA), has demonstrated its efficacy in the case of LBRT. The strategy’s substantial 27.71% yield underscores the potential profitability of this method when it's utilized effectively. This method provides a robust framework for identifying lucrative opportunities in the market and could be a valuable tool for investors seeking to maximize their returns.
The Moving Average Convergence Divergence (MACD) for LBRT turned positive on September 05, 2023. Looking at past instances where LBRT's MACD turned positive, the stock continued to rise in of 40 cases over the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on September 01, 2023. You may want to consider a long position or call options on LBRT 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 .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LBRT advanced for three days, in of 328 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 263 cases where LBRT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The 10-day RSI Indicator for LBRT moved out of overbought territory on September 19, 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 demonstrated that the ticker has stayed in the overbought zone for 10 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LBRT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
LBRT broke above its upper Bollinger Band on September 01, 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 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. LBRT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
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 (1.840) is normal, around the industry mean (3.838). P/E Ratio (5.397) is within average values for comparable stocks, (40.016). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.128). Dividend Yield (0.011) settles around the average of (0.040) among similar stocks. P/S Ratio (0.681) is also within normal values, averaging (2.390).
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. LBRT’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 86, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a oilfield service company which provides specialized stimulation services to optimize well production
A.I.dvisor indicates that over the last year, LBRT has been closely correlated with NEX. These tickers have moved in lockstep 86% of the time. This A.I.-generated data suggests there is a high statistical probability that if LBRT jumps, then NEX could also see price increases.