Investors have been carefully witnessing the recent activity of CBS Corporation (NYSE:CBS) stock. Many analysts use price trends and patterns to predict future performance, and we can glean some important insights about CBS by examining the chart.
How has the stock performed recently?
CBS Corporation (NYSE:CBS) in the last month has decreased -0.46%. Shares are now up over the past year, outperforming the broad market by -100% and underperformed a peer group of similar companies by -190%. After the latest session, which saw the stock close at a price of $56.74, CBS sits below its 52-week high. CBS Corporation (NYSE:CBS) has been trading in a bearish manner, based on the relative positions of the stock’s 20 and 200 day moving averages.
Of course, these surface-level price movements don’t tell us much about the direction that CBS may be headed in the future. Fortunately, there is way to use the speed and magnitude of these price changes to predict future performance, thanks to what are known as momentum indicators. As momentum slows, it might be a sign that a support or resistance level has been reached, and that a trend is about to reverse. Two such indicators are the RSI (Relative Strength Index) and the Stochastic %k Oscillator, which fluctuate on a scale of 0 to 100. A reading above 70 indicates that a stock is overvalued, and a reading below 30 implies that it is undervalued. The 20-day RSI for CBS is 45.74%, which suggests that the stock is not particularly expensive or cheap, and not predisposed to a reactive price movement based on this measure. The 20-day Stochastic %k measure, which sits at 70.65%, tells a different story, and suggests that CBS currently trades in overbought territory.
What do the trading volumes reveal?
Volume patterns can also be useful for predicting future performance. When trading activity is abnormally high, it’s often a sign that the market feels particularly strong in one way or another about the future direction of a stock. CBS Corporation (CBS) average trading volume of 7,682,550 during the past month is 121.56% above its average volume over the past year, indicating that investors have been more active than usual in the stock in recent times.
What do the analysts think?
CBS is currently undervalued by -19.89% relative to the average 1-year price target of $70.83 taken from a group of Wall Street Analysts. The average investment recommendation on a scale of 1 to 5 (1 being a strong buy, 3 a hold, and 5 a sell) is 2.10, which implies that analysts are generally neutral in their outlook for CBS over the next year.
How risky is the stock?
When analyzing a stock’s price performance, it’s essential to take risk into account. Beta, which measures a stock’s volatility relative to the overall market, can be used to gauge the level of systematic risk associated with a particular stock.
CBS Corporation (NYSE:CBS) has a beta of 1.64, compared to a beta of 1 for the market, which implies that the stock’s price movements are more extreme than the market as a whole. CBS therefore has a above average level of market risk. During the past couple of weeks, CBS average daily volatility was 24.82%, which is -2.29 percentage points higher than the average volatility over the past 100 days.