Last week's performance for the railroads sector saw a moderate decline, and our recommendations were to sell within this sector. You can find more information and access the data on these companies in our robot at Swing-Trader-for-Beginners-Search-for-Trend-Reversals-TA-FA.
Last week, stocks in the railroads sector experienced a moderate decline of approximately 2-3%, which aligns with the overall market downturn. Our recommendations for this sector were to sell. The notable companies in this group include Union Pacific Corp (NYSE: UNP), CSX Corp (NASDAQ: CSX), and Norfolk Southern Corp (NYSE: NSC).
The average market capitalization across the group stands at an impressive $61.2B, with market caps for individual companies ranging from $2.1B to $139.3B. Union Pacific Corp holds the highest valuation in this group at $139.3B, while the lowest valued company is TRN at $2.1B.
In terms of price movements, the average weekly price growth for all stocks in the group was -3.23%. However, looking at the monthly performance, the group showed a positive uptrend of 1.51%, and over the quarter, there was a slight decline of -0.17%. Notably, TRN experienced the highest price growth at -0.31%, while CSX suffered the biggest fall at -6.75%.
During the week of 8/5/23 at 7:02 AM, CSX (CSX, $31.52) emerged as the top loser, declining by -6.75%. However, on 6/8/23 at 7:25 AM, it was a top weekly gainer with a significant 6.23% jump. Meanwhile, on 5/25/23 at 7:44 AM, Canadian Pacific Kansas City (CP, $76.78) faced a similar fate, being a top loser with a decline of -6.82%.
Looking at trading volume, the average weekly volume growth for all stocks in the group was 18%. On 6/24/23 at 6:52 AM, Trinity Industries stock saw a record-breaking daily growth of 217% of the 65-Day Volume Moving Average.
Considering fundamental analysis ratings, the group's average ratings are as follows: Valuation Rating: 78, P/E Growth Rating: 66, Price Growth Rating: 47, SMR Rating: 51, and Profit Risk Rating: 32. The Seasonality Score stands at -45, suggesting a bearish sentiment. For UNP, its RSI Indicator left the overbought zone as the 10-day RSI Oscillator moved out of the overbought territory on August 02, 2023. This indicates a potential shift from an upward trend to a downward trend, prompting traders to consider selling the stock or buying put options. Tickeron's A.I. advisor found that in 17 of the 32 instances when the indicator moved out of the overbought zone, the stock moved lower in the following days, putting the odds of a move down at 53%.
Moving on to stock forecasts, the current price of $228.52 for one of the companies is above the highest support line found at $228.46 by A.I. Throughout the month of 07/05/23 - 08/04/23, the price experienced an impressive +12% uptrend, while the week of 07/28/23 - 08/04/23 showed a minor -2% downtrend. Another stock, CNI, saw its Momentum Indicator turn negative on August 02, 2023, signaling a new downward trend. Tickeron's A.I. advisor found that in 51 of the 88 similar instances, when the indicator turned negative, the stock moved further down in the following days, putting the odds of a decline at 58%.
For the stock priced at $116.92, it crossed the support line at $111.32 and is currently trading between $150.27 resistance and $111.32 support lines. Throughout the month of 07/05/23 - 08/04/23, the price experienced a -2% downtrend, while the week of 07/28/23 - 08/04/23 saw a decline of -3%.
Regarding CP, its 10-day RSI Indicator moved out of the overbought territory on July 27, 2023, possibly signaling a shift from an upward trend to a downward trend. Traders may want to consider selling the stock or buying put options. Tickeron's A.I. advisor found that in 29 of the 53 instances when the indicator moved out of the overbought zone, the stock moved lower in the days that followed, putting the odds of a move down at 55%.
Lastly, for another stock priced at $80.81, it is currently below the lowest support line found at $84.02 by A.I. Throughout the month of 07/05/23 - 08/04/23, the price experienced a slight +0.67% uptrend, while the week of 07/28/23 - 08/04/23 showed a -3% downtrend.
The Aroon Indicator for UNP entered a downward trend on September 20, 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 140 similar instances where the Aroon Indicator formed such a pattern. In of the 140 cases the stock moved lower. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on September 22, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on UNP as a result. In of 96 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
UNP moved below its 50-day moving average on September 05, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for UNP crossed bearishly below the 50-day moving average on September 08, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 19 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where UNP 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 RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where UNP'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 is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where UNP advanced for three days, in of 325 cases, the price rose further within the following month. The odds of a continued upward trend are .
UNP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very 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 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 83, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. UNP’s price grows at a higher 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 consistent 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: UNP's P/B Ratio (9.634) is very high in comparison to the industry average of (1.999). P/E Ratio (19.048) is within average values for comparable stocks, (34.618). Projected Growth (PEG Ratio) (3.178) is also within normal values, averaging (1.953). Dividend Yield (0.025) settles around the average of (0.046) among similar stocks. P/S Ratio (5.171) is also within normal values, averaging (3.165).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of railroad and freight transportation services
A.I.dvisor indicates that over the last year, UNP has been closely correlated with CSX. These tickers have moved in lockstep 73% of the time. This A.I.-generated data suggests there is a high statistical probability that if UNP jumps, then CSX could also see price increases.