Many of you have been asking for beaten-down stocks that have potential and are beginning to rebound. That got me thinking about how I could use Barchart’s powerful screening tools to find stocks that have hit bottom and are starting to recover. It was easier than I thought.
What I did was use the Russell 3000 Index (IWV) stocks as my Watchlist and screened for stocks that had a negative Weighted Alpha of over -50 and a Trend Seeker “Buy” signal, then used the Flipcharts feature to find stocks that looked like they were in a real recovery.
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Using that screening method, my results revealed 36 stocks that fit my criteria. After using the Flipcharts feature to review the charts, I selected SelectQuote (SLQT) to feature today.
Today’s Featured Stock
Valued at $ 160 million, SelectQuote (SLQT) builds and operates insurance exchanges for life, Medicare, auto and home insurance products.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the Weighted Alpha below -50 and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for reversing price appreciation. SLQT checks those boxes. The Trend Seeker issued a new “Buy” signal on April 17. Since then, the stock has gained 18.01%.
www.barchart.comBarchart Technical Indicators for SelectQuote
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each 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. These technical indicators form the Barchart Opinion on a particular stock.
SelectQuote scored an all-time low of $0.5628 on March 30.
SelectQuote has a Weighted Alpha of -68.14. SLQT has a 56% “Sell” opinion from Barchart. The stock has lost 72.1% over the past 52 weeks. SelectQuote has its Trend Seeker “Buy” signal intact. The stock recently traded at $0.9179 with a 50-day moving average of $0.7366. SLQT has made 13 new highs and gained 54.61% over the past month. Relative Strength Index (RSI) is at 70.91. There’s a technical support level around $0.8846.Don’t Forget the Fundamentals
$160 million market capitalization. Analysts project revenue to grow 8.82% this year and another 6.11% next year. Earnings are estimated to decrease 116.27% this year but increase again by 625.00% next year.Analyst and Investor Sentiment on SelectQuote
The Wall Street analysts followed by Barchart give the stock 2 “Strong Buy” and 3 “Hold” opinions with price targets between $1.25 and $5.00. Value Line rates the stock “Below Average.” Morningstar thinks the stock is 17% undervalued with a fair value of $1.10 3,555 investors are following the stock on Seeking Alpha, which rates it a “Strong Sell.” Short interest is 2.70% of the float with 4.05 days to cover the float.The Bottom Line on SelectQuote
SLQT stock has been beaten down, but recent analyst earnings revisions give us some hope the price appreciation will continue. This stock’s future is highly speculative, but for those of you looking for a rebound candidate, this seems to fit your criteria.
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.
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.
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