Pay attention to the following consumer_cyclical stocks approaching critical price targets: Aramark, Bright Horizons Family Solutions Inc., Pinduoduo are the ones to watch.
Yesterday's session summary: Leading equity indices in the US declined as S&P 500 slipped 1.58% and closed at 4,071.63. Nasdaq shed 1.98% and closed at 11,800.
What is a Price Target?
A "price target" is an estimate of the future price of a stock based on earnings forecasts and assumed valuation multiples. Price targets are typically generated by respected market analysts who believe a stock to be fairly valued relative to its projected and historical earnings. Target prices are used to evaluate stocks and can help investors evaluate the potential risk/reward profile of a stock. Let's review some consumer_cyclical stocks and their price targets.
Aramark now at $34.08 | Forthcoming price target: 23 cents lower at $33.85
$33.85 is only 23 cents away for Aramark and might put a stop to its current downtrend.
Having fallen 84 cents in 9 days, more of the same from yesterday's session: the large-scale food service company plunged into the red after losing 2.27%, declining to $34.08. Yesterday's trading volume was 1.65 million shares which is slightly under the 21-day average of 2.34 million.
Bright Horizons Family Solutions (BFAM) Price target: $71 | Last price: $72 | Daily range: $71.93 – $74.94
Early in yesterday's session, Bright Horizons Family Solutions dropped to $71.93 from $75.37 at the end of Monday, before closing at $72. During the session, it lost 4.44%.
Yesterday's fall added to a 6 day bearish run, during which Bright Horizons Family Solutions lost $4. Daily trading volume (483,262 shares) was above the current multiday average of 335,945.
Since its 52-week high of $127.15, the largest employer-sponsored child care provider has lost 42.25% over the last twelve months. The company's market cap currently stands at $4.16 billion with an average daily volume of 335,945 shares. So far this year, it has been under-performing the Nasdaq by 4.64%.
A convincing break of this target could pave the way for deeper losses.
Bright Horizons Family Solutions is scheduled to announce earnings results Monday. The consensus EPS estimate is 0.39 and the consensus revenue estimate is $530.32 million.
Pinduoduo's price target: $63.7 | Last close: $64.58 | Daily range: $63.58 – $65.23 | Off hours: $65.94
A persuasive break of this target could lead to higher losses.
Having fallen $3.51 in 6 days, yesterday's session continued the recent downtrend: after ending Monday at $66.75, Pinduoduo dropped to $63.58 early in yesterday's session and closed at $64.58. In total, it lost 3.25%. Daily trading volume (8.93 million shares) increased, making up 107% of the 21-day average (8.33 million).