TAL Education Group hits lower rail of channel after bullish signal triggered
Chinese tutoring company TAL Education Group (NYSE: TAL) has been trending higher since last October and a trend channel has formed that defines the various cycles within the overall trend. The stock recently hit the lower rail of the channel and looks like it is ready to bounce once again.
The stock was in overbought territory based on the daily stochastic readings. With the turn higher in the last few days, the indicators made a bullish crossover on May 28.
The Tickeron AI Trend Prediction Engine generated a bullish signal for TAL on May 24 and the signal calls for a gain of at least 4% over the next month. The signal showed a 75% confidence level. Past predictions on TAL have been successful 90% of the time.
TAL Education Group has some of the highest fundamental ratings a company can get according to Investor’s Business Daily’s rating’s systems. The company scores a 99 on the EPS rating and an A on the SMR rating. Those are both the highest ratings a company can achieve.
TAL has been able to grow its earnings at a rate of 49% per year over the last three years while sales have grown at a rate of 63%. The company shows a return on equity of 21.7% and a profit margin of 17.2%.
Momentum Indicator for TAL turns positive, indicating new upward trend
TAL saw its Momentum Indicator move above the 0 level on June 10, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 93 similar instances where the indicator turned positive. In of the 93 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
TAL moved above its 50-day moving average on June 05, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for TAL crossed bullishly above the 50-day moving average on June 09, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 14 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 TAL advanced for three days, in of 266 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 50-day moving average for TAL moved below the 200-day moving average on June 02, 2025. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TAL 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 Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. TAL’s price grows at a lower 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 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 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 (2.038) is normal, around the industry mean (13.786). P/E Ratio (0.000) is within average values for comparable stocks, (78.221). TAL's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.764). Dividend Yield (0.000) settles around the average of (0.037) among similar stocks. P/S Ratio (5.373) is also within normal values, averaging (11.909).
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. TAL’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 75, placing this stock worse than average.
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General Information
an education and tutoring services provider
Industry MiscellaneousCommercialServices
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