Swing Trader: Downtrend Protection v.2 (TA) Robot Generates Impressive Gains, But WISH Faces Downward Pressure
In the fast-paced world of trading, the use of AI trading robots has become increasingly popular. One such robot, the Swing Trader: Downtrend Protection v.2 (TA), has proven its worth by delivering a remarkable gain of +3.86% while trading WISH over the previous week. However, recent indicators and the company's latest earnings report suggest that caution may be warranted when considering an investment in WISH. In this article, we will delve into the details and analyze the earnings results to provide a comprehensive overview for investors.
WISH's Momentum Indicator Signals a Potential Downturn:
On June 23, 2023, WISH's Momentum Indicator crossed below the 0 level, signaling a potential shift into a new downward move. This technical indicator is often watched by traders as it can provide valuable insights into a stock's future direction. In fact, Tickeron's A.I.dvisor analyzed 46 similar instances where the indicator turned negative and found that in 44 of those cases, the stock continued to decline in the following days. Based on historical data, there is a 90% likelihood of a further decline in WISH's stock price.
Earnings Report Highlights:
The most recent earnings report for WISH was released on May 10. It revealed an earnings per share (EPS) of -382 cents, missing the estimated EPS of -379 cents. The negative EPS indicates that WISH experienced a loss during the reported period. With 83.36K shares outstanding, the current market capitalization of WISH stands at approximately 163.30M.
Analysis and Investor Considerations:
The combination of WISH's downward momentum signal and its recent earnings report raises concerns for investors. While the Swing Trader: Downtrend Protection v.2 (TA) robot may have generated positive gains in the previous week, it is essential to consider the broader market conditions and company-specific factors.
The negative EPS reported by WISH suggests that the company's financial performance has been weak. Investors typically seek companies with positive earnings and a strong track record of profitability. WISH's failure to meet the estimated EPS indicates potential challenges the company may be facing.
Additionally, the market capitalization of WISH, standing at 163.30M, is relatively low. This might be indicative of market sentiment and investor confidence in the company. A low market capitalization can also make the stock more susceptible to price fluctuations and increased volatility.
While the Swing Trader: Downtrend Protection v.2 (TA) robot demonstrated impressive gains when trading WISH in the previous week, investors should exercise caution due to the potential downward shift signaled by the Momentum Indicator and the company's recent earnings report. The negative EPS and the relatively low market capitalization underscore the challenges and uncertainties that WISH currently faces.
WISH's Stochastic Oscillator is staying in oversold zone for 10 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 uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where WISH's RSI Oscillator exited the oversold zone, of 28 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 WISH just turned positive on September 22, 2023. Looking at past instances where WISH's MACD turned positive, the stock continued to rise in of 30 cases over the following month. The odds of a continued upward trend are .
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where WISH advanced for three days, in of 107 cases, the price rose further within the following month. The odds of a continued upward trend are .
WISH may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 11, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on WISH as a result. In of 51 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent 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 WISH 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 WISH entered a downward trend on September 25, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
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 (0.297) is normal, around the industry mean (17.208). P/E Ratio (0.000) is within average values for comparable stocks, (72.902). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.306). Dividend Yield (0.000) settles around the average of (0.039) among similar stocks. P/S Ratio (0.230) is also within normal values, averaging (9.397).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. WISH’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 (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 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. WISH’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 92, placing this stock worse than average.
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Industry description
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
Industry InternetRetail
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WISH and
Correlation & Price change
A.I.dvisor indicates that over the last year, WISH has been loosely correlated with CVNA. These tickers have moved in lockstep 58% of the time. This A.I.-generated data suggests there is some statistical probability that if WISH jumps, then CVNA could also see price increases.
| Ticker / NAME | Correlation To WISH | 1D Price Change % | ||
|---|---|---|---|---|
| WISH | 100% | +12.59% | ||
| CVNA - WISH | 58% Loosely correlated | -4.14% | ||
| JMIA - WISH | 57% Loosely correlated | +1.67% | ||
| W - WISH | 50% Loosely correlated | -0.02% | ||
| RVLV - WISH | 48% Loosely correlated | +2.00% | ||
| ETSY - WISH | 46% Loosely correlated | +1.44% | ||
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