Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Oct 28, 2019
With Amazon and Netflix out of the way, fellow FAANG stocks set for earnings releases in the week ahead

With Amazon and Netflix out of the way, fellow FAANG stocks set for earnings releases in the week ahead

Amazon reported earnings on October 24 and the company came up short on the earnings estimate, but beat on the revenue side. The stock dropped sharply when it opened for trading the next day, but the stock rallied throughout the day and ended up only losing a little over 1%. Fellow FAANG member Netflix reported on October 16 and it beat its EPS estimate and its revenue estimate, but came up short on subscriber growth. Netflix jumped after its earnings report, but fell in the subsequent days.

With those two FAANG members out of the way, this coming week will bring earnings reports from Facebook (Nasdaq: FB), Apple (Nasdaq: AAPL), and Alphabet (Nasdaq: GOOG). Alphabet is set to release results on October 28 and Apple and Facebook will both report on October 30.

Looking at these three stocks from a fundamental perspective based on Tickeron’s fundamental analysis tools, we get an idea of how these companies compare to other investment opportunities. I put together the following table to show what each company is expected to report compared to last year and where each company ranks in various categories.

The first thing that jumped out at me is the fact that Apple and Alphabet are expected to see earnings decline slightly from last year’s results. This reflects the economy we are in to some degree and it reflects the impact the trade war is having on tech companies. We see that Facebook is the only one with a valuation that is a little higher than average and that could be a concern.

All three companies rank above average in terms of the SMR (sales growth, profit margin, and return on equity) ratings. Apple and Alphabet are both better than average in terms of the Profit vs. Risk rating while Apple and Facebook are above average in the P/E Growth Ratings. The only rating out of all of them that is in the bottom 20th percentile is Alphabet’s P/E Growth rating.

Looking at different metrics from Investor’s Business Daily, we see pretty solid ratings for all three companies. Alphabet gets green marks across the board with the composite rating, the EPS rating, and the SMR rating all falling in the top 20th percentile and the Relative Price Strength rating is in the top 25th percentile.

Apple’s composite, Relative Price Strength, and SMR rating are all in the upper 20 percent of readings, but the EPS rating is in the average range. Facebook doesn’t have any ratings in the top 2oth percentile, but the composite, RS rating and SMR rating are all above average while the EPS rating is in the average range.

The sentiment indicators for the three show pretty bullish readings for the most part, but that is to be expected given how the stocks have performed. All three stocks have been in the top 25th percentile in terms of price performance for the past year, so bullish sentiment is to be expected.

The one area that stood out was the analysts’ ratings for Apple. There are 42 analysts covering the stock and only 22 have the stock rated as a “buy”. There are 15 “hold” ratings and five “sell” ratings. This puts the buy percentage at 52.4% and that is below average. The short interest ratios are all skewed to the bullish side and the analysts ratings for Facebook and Alphabet are both extremely optimistic.

Looking at the weekly charts for the three, Facebook just went through a pullback and its overbought/oversold indicators are considerably lower than the other two. Alphabet has been trending higher since June and its indicators are approaching overbought levels. Apple is in overbought territory based on its weekly stochastic readings and its 10-week RSI.

I did find the weekly chart for Apple particularly interesting.

We see that the stock was trending higher within a trend channel in 2017 and through most of 2018. The stock broke below the lower rail last fall but then rallied back. What used to be the lower rail of the former trend channel then acted as resistance in April of this year and it appears as though a new trend channel has formed. The stock has rallied sharply since May and the stock just moved above the former lower rail.

Related Tickers: AAPL
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.