Tanger Outlet Centers (SKY) hits upper rail of downward sloped channel ahead of earnings
Tanger Outlet Centers (NYSE: SKT) is set to announce second quarter earnings results on Wednesday, July 31. The company is expected to earn $0.24 per share on the quarter and that matches the earnings from the second quarter of 2018.
The stock has been trending lower for several years now, but the last six months really caught my attention. A trend channel has formed that has defined the various swings within the overall trend. The stock just hit the upper rail of the channel and it is hitting resistance from its 50-day moving average as well.
The daily stochastic readings just hit overbought territory this week and they made a bearish crossover on July 29.
The Tickeron Trend Prediction Engine generated a bearish signal for Tanger on July 26. It showed a confidence level of 88% and it calls for a decline of at least 4% within the coming month. Past predictions on the stock have been successful 72% of the time.
The company has seen its earnings decline at a rate of 45% per year over the last three years. First quarter earnings were down 5% from the previous year and analysts expect 2019 earnings to drop 9% from 2018.
SKT saw its Stochastic Oscillator recovers from the overbought zone
The Stochastic Oscillator for SKT moved out of overbought territory on October 22, 2024. This could be a bearish sign for the stock and investors may want to consider selling or taking a defensive position. A.I.dvisor looked at 56 similar instances where the indicator exited the overbought zone. In of the 56 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for SKT moved out of overbought territory on October 21, 2024. 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 37 similar instances where the indicator moved out of overbought territory. In of the 37 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for SKT turned negative on October 21, 2024. 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 47 similar instances when the indicator turned negative. In of the 47 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 SKT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
SKT broke above its upper Bollinger Band on October 16, 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.
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SKT advanced for three days, in of 316 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 231 cases where SKT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock better than average.
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. SKT’s price grows at a higher 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 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly 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 (5.637) is normal, around the industry mean (1.979). P/E Ratio (31.891) is within average values for comparable stocks, (62.368). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (7.058). Dividend Yield (0.034) settles around the average of (0.068) among similar stocks. P/S Ratio (6.729) is also within normal values, averaging (7.130).
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