Tiffany (TIF, $123.90) profit rebounds in Q2 from Q1 loss

Tiffany   returned to positive earnings in the fiscal second quarter, following its first quarter loss.  

The luxury goods company’s earnings came in at $31.9 million, or 26 cents a share, lower than the year-ago period’s $136.3 million, or $1.12.

Second-quarter revenue plunged -29% year-over-year to $747.1 million ; but that’s an improvement from the -45% year-over-year drop in the first quarter ended April 30. However, sales missed the Zacks Consensus Estimate by 6.62%.

Chief Executive Alessandro Bogliolo cited increased sales in mainland China and global e-commerce acceleration during the second quarter as forces that pushed the company’s profits into positive territory in the quarter.

According to Tickeron, TIF's in Downtrend: Moving Average Convergence Divergence (MACD) Histogram crosses below signal line

This is a Bearish indicator signaling TIF's price could decline. Traders may explore shorting the ticker or looking at put options. In 25 of 47 cases where TIF's MACD histogram became negative, the price fell further within the following month. The odds of a continued Downtrend are 53%.

Current price $123.90 crossed the support line at $126.13 and is trading between $126.13 support and $121.07 support lines. Throughout the month of 07/27/20 - 08/26/20, the price experienced a -3% Downtrend. During the week of 08/19/20 - 08/26/20, the stock fell -5%.

Technical Analysis (Indicators)

Bearish Trend Analysis

The RSI Indicator appears to be shifting from an Uptrend to a Downtrend. In 17 of 34 cases where TIF's RSI indicator exited the overbought zone, the price fell further within the following month. The odds of a continued Downtrend are 50%.

The Momentum Indicator moved below the 0 level on August 25, 2020. Traders may consider selling the ticker, shorting the ticker, or exploring put options. In 44 of 94 cases where TIF's Momentum Indicator fell below the 0 level, its price fell further within the subsequent month. The odds of a continued Downtrend are 47%.

The price moved below its 50-day Moving Average, which indicates a reversal from an Uptrend to a Downtrend. In 22 of 44 cases where TIF's price crossed below its 50-day Moving Average, its price fell further within the subsequent month. The odds of a continued Downtrend are 50%.

Following a 3-day Decline, the ticker is projected to fall further. Considering data from situations where TIF declined for three days, in 140 of 266 cases, the price rose further within the following month. The odds of a continued Downtrend are 53%.

Bullish Trend Analysis

The Stochastic Indicator is in the oversold zone -- be on the watch for TIF's price rising or consolidating in the future. At that time, consider buying the ticker or exploring call options.

The 10-day Moving Average for this ticker crossed above its 50-day Moving Average on July 27, 2020, which can be construed as a buy signal, indicating that the trend is shifting higher. In 10 of 13 similar cases where TIF's 10-day Moving Average crossed above its 50-day Moving Average, the price rose further within the following month. The odds of a continued Uptrend are 77%.

The lower Bollinger Band was broken -- a price increase is expected as the ticker heads toward the middle band, which indicates a buy or call consideration for traders. In 22 of 38 cases where TIF's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued Uptrend are 58%.

The Aroon Indicator entered an Uptrend today. In 132 of 263 similar cases where TIF Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 50%.

Fundamental Analysis (Ratings)

Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 56%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.21.

The Tickeron Valuation Rating of 77 (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 (4.65) is normal, around the industry mean (11.25). P/E Ratio (41.90) is within average values for comparable stocks, (54.21). Projected Growth (PEG Ratio) (1.11) is also within normal values, averaging (1.54). Dividend Yield (1.71) settles around the average of (1.05) among similar stocks. TIF's P/S Ratio (3.86) is very high in comparison to the industry average of (0.79).

The Tickeron Price Growth Rating for this company is 52 (best 1 - 100 worst), indicating fairly steady price growth. TIF’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is 51 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock slightly better than average.

The Tickeron SMR rating for this company is 36 (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 PE Growth Rating for this company is 12 (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.

Contributor

Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.