Real Estate Investment Trust American Homes 4 Rent (NYSE: AMH) has a very interesting looking chart at this point in time. The stock looks like it put in a double-bottom down in the $19.50 area. The stock dropped down there in early November then bounced up to the $20.75 area. It then dropped back down to the $19.50 area and rallied once again. When it broke above the $20.75 area it was confirmation of the double-bottom pattern. Unfortunately we could also be looking at a double-top pattern.
The way the stock stalled in the $21.40 area in late October catches your attention and now it has bounced back up to the area again and stalled there on Friday. We also see that the stochastic readings are in overbought territory and made a bearish crossover on Friday.
The company’s fundamental indicators are average at best and that isn’t going to help the company break above resistance. The earnings have been stagnant over the last three years. The return on equity is only 1.7% and the profit margin is only 8%.
One area where the fundamental indicator is above average is in the sales growth. The company has averaged sales growth of 20% per year over the last three years and they were up 13% in the most recent quarter.
The sentiment toward American Homes 4 Rent could also be a problem as investors and analysts appear to be skewed to the optimistic side. The short interest ratio is a paltry 1.36 and nine out of 15 analysts rate the stock as a “buy”.
AMH broke above its upper Bollinger Band on May 02, 2025. 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 A.I.dvisor looked at 41 similar instances where the stock broke above the upper band. In of the 41 cases the stock fell afterwards. This puts the odds of success at .
The 10-day RSI Indicator for AMH moved out of overbought territory on May 05, 2025. 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 30 similar instances where the indicator moved out of overbought territory. In of the 30 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on May 30, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on AMH as a result. In of 94 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for AMH turned negative on May 14, 2025. 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 55 similar instances when the indicator turned negative. In of the 55 cases the stock turned lower in the days that followed. This puts the odds of success at .
AMH moved below its 50-day moving average on June 04, 2025 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMH 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 Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The 50-day moving average for AMH moved above the 200-day moving average on May 16, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMH advanced for three days, in of 295 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 273 cases where AMH 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 well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AMH’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 average 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 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 (1.909) is normal, around the industry mean (1.993). P/E Ratio (35.980) is within average values for comparable stocks, (62.898). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (7.058). Dividend Yield (0.025) settles around the average of (0.070) among similar stocks. P/S Ratio (8.110) is also within normal values, averaging (7.144).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
an operator of residential homes
Industry RealEstateInvestmentTrusts