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%.
TAL saw its Momentum Indicator move above the 0 level on April 17, 2024. 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 89 similar instances where the indicator turned positive. In of the 89 cases, the stock moved higher in the following days. The odds of a move higher are at .
The Moving Average Convergence Divergence (MACD) for TAL just turned positive on April 10, 2024. Looking at past instances where TAL's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
TAL moved above its 50-day moving average on April 25, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TAL advanced for three days, in of 298 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 237 cases where TAL Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
TAL broke above its upper Bollinger Band on April 25, 2024. 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 (best 1 - 100 worst), indicating steady price growth. TAL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of (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 (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 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 (75.284). P/E Ratio (0.000) is within average values for comparable stocks, (82.572). TAL's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.702). Dividend Yield (0.000) settles around the average of (0.054) among similar stocks. P/S Ratio (5.373) is also within normal values, averaging (33.440).
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 81, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
an education and tutoring services provider
Industry MiscellaneousCommercialServices