Price action reveals Honeywell International, Mercury Systems, Inc., Howmet Aerospace Inc as the stocks to watch as they near pivotal price targets in the near term.
A quick recap of where the last trading session ended: Leading equity indices in the US declined as after dropping 1.79%, S&P 500 closed at 3,999. Dow Jones lost 1.4% and ended the session at 33,947.
What is a Price Target?
A price target is the projection of an asset's future price. Support and resistance lines are important components of technical analysis used in predicting a price target because they prevent an asset from being pushed beyond a certain limit. When an asset drops in value it nears its support line, and when it increases in value it comes closer to its resistance line. Assets that are on a trend and are approaching one of their lines are selected for this article. Check out this rundown of industrials stocks and their price targets.
Honeywell's price target: $214.34 | Last close: $215.6 | Daily range: $215.2 – $218.59 | Off hours: $215.6
A convincing break of this target could pave the way for deeper losses.
Having fallen 47 cents in 4 days, yesterday's session continued the recent downtrend: early in yesterday's session, Honeywell dropped to $215.2 from $219.08 at the end of Friday, before closing at $215.6. During the session, it lost 1.59%.
Daily trading volume (3 million shares) was slightly above the current multiday average of 2.92 million.
Mercury Systems's price target: $50.42 | Last close: $51.49 | Daily range: $50.85 – $53.42 | Off hours: $51.49
Mercury could begin to recover as it approaches significant support, now $1.07 away from $50.42. Dipping below could be an indication that further losses are ahead.
After ending Friday at $53.58, Mercury Systems declined to $50.85 yesterday before closing at $51.49, thereby losing 3.9% in total. Daily trading volume (406,663 shares) was above the current multiday average of 280,524.
Howmet Aerospace's price target: $38.15 | Last close: $38.54 | Daily range: $38.31 – $39.25 | Off hours: $38.54
An influx of sellers pushed the US aerospace firm to end the session lower around $38.54, while establishing a $38.31 to $39.25 session range yesterday. Yesterday's down move comes on the back of a 6 day uptrend, during which Howmet Aerospace added $2.05 to its value. Yesterday's trading volume was 2.22 million shares which is slightly below the 21-day average of 2.92 million.
The past 3 months have been positive for the US aerospace company as it added 10.8% compared to its 3-month low of $29.26. The company has a market cap of $15.94 billion with an average daily trading volume of 2.92 million shares. The S&P 500 has been doing worse in 2022, it has been passing it by 38.48%. Howmet Aerospace's last revenue report was $1.43 billion with an EPS of 36 cents.
Howmet Aerospace's run now faces a challenge at $38.15, which is only 39 cents away and will be interesting to follow.