In this TSX Breakouts report, there are 24 stocks on the positive breakouts list (stocks with positive price momentum), and 32 securities are on the negative breakouts list (stocks with negative price momentum).
Nearly half of the stocks on the positive breakout list are in overbought territory with RSI (relative strength index) readings at or above 70. Furthermore, two overbought stocks, Dollarama (DOL-T) and Pizza Pizza Royalty Corp. (PZA-T), are trading above their average target prices, implying these securities may be fully valued.
Meanwhile, nearly all stocks on the negative breakouts list are in oversold territory, as indicated by RSI readings of 30 or below. Of note is a new addition to the negative breakouts list, Aecon Group Inc. (ARE-T).
On March 5, the company reported its fourth quarter earnings results, which fell short of the Street’s expectations. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $76-million, below the consensus estimate of $82-million.
Over the past two trading days, the share price has dropped 19 per cent on high volume, breaking below the 200-day moving average. The average target price suggests the share price may rebound over 50 per cent over the next year. Aecon pays its shareholders a quarterly dividend of 19 cents per share, equating to a current annualized dividend yield of 4.2 per cent.
According to data from LSEG, the stock currently has six buy recommendations and five hold recommendations.
–
–
The Breakouts file is a technical analysis screen intended to identify companies that are technically breaking out. In addition, this report highlights a company’s dividend policy, analysts’ recommendations, financial forecasts, and provides a brief technical analysis for a security to provide readers with more information.
If a stock appears on the positive breakouts list, this indicates positive price momentum, and that a company may be worthwhile for investors to look at the fundamentals in order to determine if the recent price strength is warranted and will continue. If a security appears on the negative breakouts list, this indicates negative price momentum, and may be indicative of either deteriorating fundamentals or perhaps indicates a buying opportunity.
Securities screened are from the S&P/TSX composite index, the S&P/TSX Small Cap index, as well as Canadian small cap stocks outside of these indexes that have a minimum market capitalization of $200-million.
A technical analysis screen does not replace fundamental analysis, but can help identify companies worth having a closer look at.
This report should not be considered an investment recommendation.