The chart of the day belongs to the analytics software company MicroStrategy (MSTR), states Jim Van Meerten of BarChart.com.
I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum, and a Trend Seeker buy signal. I then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 10 / 23 the stock gained 58.78%.
MSTR Price vs Daily Moving Averages
MicroStrategy Incorporated provides enterprise analytics software and services in the United States, Canada, Europe, the Middle East, Africa, and internationally. It offers MicroStrategy, an enterprise analytics software platform that enables users to create visualizations, customize apps, and embed analytics directly into workflows; and MicroStrategy Cloud Environment, a managed software-as-a-service solution, which offers always-on threat monitoring and enables rapid analytics development and deployment to deliver security and data privacy requirements.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 168.30+ Weighted Alpha
- 195.80% gain in the last year
- Trend Seeker buy signal
- Above its 20, 50, and 100-day moving averages
- 4 new highs and up 26.32% in the last month
- Relative Strength Index 74.41%
- Technical support level at $581.67
- Recently traded at $599.39 with a 50-day moving average of $436.93
Fundamental Factors:
- Market Cap $8.71 billion
- P/E 165.53
- Revenue is expected to grow 1.10% this year and another 2.70% next year
- Earnings are estimated to increase 118.90% this year, decrease an additional 89.50% next year, and continue to compound at an annual rate of 10.00% for the next five years
Analysts and Investor Sentiment: I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analysts gave four strong buy opinions on the stock
- Analysts' price targets are between $510 and $670
- The individual investors following the stock on Motley Fool voted 246 to 56 for the stock to beat the market with the most experienced investors voting 55 to 14 for the same result
- Value Line gives it the above-average rating of two
- CFRAs MarketScope rates it a strong sell
- 25,550 investors monitor the stock on Seeking Alpha
Additional Disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least every week.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
