Swing Trader: Volatility Balanced Strategy (TA) AI Trading Robot Outperforms with +3.83% Gain on PTON, but Challenges Ahead
Swing trader: Volatility Balanced Strategy (TA), has recently made waves with its remarkable performance. In this article, we will delve into the earning results of the stock in focus, PTON, and evaluate the trading robot's success amid bearish signals and an earnings miss.
AI Robot's Performance:
The Swing Trader AI robot, deployed at our esteemed robot factory, has demonstrated its prowess by generating a noteworthy gain of +3.83% while trading PTON over the previous week. This achievement underscores the effectiveness of the robot's volatility-balanced strategy, which navigates the dynamic nature of the market to capitalize on favorable trading opportunities.
Bearish Signal: MACD Turns Negative:
However, it is essential to consider the prevailing market conditions and indicators that may impact a stock's future performance. PTON's Moving Average Convergence Divergence Histogram (MACD) turned negative on June 22, 2023. The MACD is a widely used technical indicator that helps identify potential changes in a stock's momentum. A negative MACD suggests a bearish outlook and indicates that PTON's stock price may decline in the near future.
Statistical Analysis of Negative MACD:
To gain deeper insights into the significance of PTON's negative MACD, Tickeron's A.I.dvisor examined 31 instances where the indicator turned negative. In an impressive 87% of these cases, the stock price moved lower in the subsequent days. This statistical analysis strengthens the hypothesis that PTON's shares may experience a downward trajectory following the negative MACD signal.
Earnings Miss and Market Capitalization:
Furthermore, it is worth noting that PTON recently released its earnings report on May 04, which revealed an earnings per share (EPS) of -79 cents, missing the estimated -47 cents. This negative earnings surprise might have contributed to market sentiment surrounding the stock. PTON currently has 1.65 million shares outstanding, resulting in a market capitalization of 2.57 billion dollars.
Despite the bearish signals indicated by PTON's negative MACD and the earnings miss, the Swing Trader AI robot has achieved impressive gains while trading this stock. The +3.83% gain generated over the previous week underscores the effectiveness of the robot's volatility-balanced strategy.
PTON's Indicator enters downward trend
The Aroon Indicator for PTON entered a downward trend on September 26, 2023. 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 226 similar instances where the Aroon Indicator formed such a pattern. In of the 226 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 08, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on PTON as a result. In of 64 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for PTON turned negative on September 08, 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 34 similar instances when the indicator turned negative. In of the 34 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 PTON declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where PTON'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 Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 11 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.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PTON advanced for three days, in of 240 cases, the price rose further within the following month. The odds of a continued upward trend are .
PTON may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. PTON’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 (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 (86.957) is normal, around the industry mean (18.853). P/E Ratio (0.000) is within average values for comparable stocks, (32.401). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.553). Dividend Yield (0.000) settles around the average of (0.063) among similar stocks. P/S Ratio (0.546) is also within normal values, averaging (5.300).
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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PTON’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.
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Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
an interactive fitness platform, which engages in the operation of in-studio fitness classes, fitness clubs, at-home fitness equipment & content and health & wellness apps
Industry RecreationalProducts
PTON and
Correlation & Price change
A.I.dvisor indicates that over the last year, PTON has been loosely correlated with PII. These tickers have moved in lockstep 51% of the time. This A.I.-generated data suggests there is some statistical probability that if PTON jumps, then PII could also see price increases.
| Ticker / NAME | Correlation To PTON | 1D Price Change % | ||
|---|---|---|---|---|
| PTON | 100% | +4.76% | ||
| PII - PTON | 51% Loosely correlated | -2.47% | ||
| MODG - PTON | 47% Loosely correlated | -2.41% | ||
| BC - PTON | 46% Loosely correlated | -1.45% | ||
| YETI - PTON | 46% Loosely correlated | -2.25% | ||
| SEAS - PTON | 45% Loosely correlated | -3.51% | ||
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