Hot Stock in Focus – SLM Corporation (NASDAQ: SLM)

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Hot Stock in Focus – SLM Corporation (NASDAQ: SLM)

Wall Street rebounded strongly on Wednesday (May 16) as upbeat data about US industry and positive corporate results offset weak housing data and inflation jitters.

The benchmark Dow Jones Industrial Average gained 62.52 points (0.25 per cent) to close the day at 24,768.93, recouping some of the ground lost on Tuesday.

The broader S&P 500 jumped 11.01 points (0.41 per cent) to end at 2,722.46, while the tech-dominant Nasdaq rose 46.67 points (0.63 per cent) to 7,398.30 respectively.

Yields on the 10-year US Treasury note continued to move higher, hitting 3.1 per cent, and oil prices rose again, so inflation concerns remain, but seemed to be overshadowed by positive data.

New data showed industrial production jumped 0.7 per cent in April, and while it in part was spurred by cold weather that drove utility output higher, manufacturing and mining also put in a solid performance.

However, the cold weather that assisted industry also put a damper on homebuilding, particularly of apartments, which slowed in April, falling 3.7 per cent.

Department store chain Macy’s soared nearly 10 per cent after beating expectations for same-store sales.

“We are seeing a rebound, with good data on industrial production and a rebound in oil prices,” said Peter Cardillo of Spartan Capital Securities.

But trade and geopolitical concerns – counting North Korea’s threat to pull out of the much touted June summit with President Donald Trump – are “overhanging the market,” he said.

Gorilla Trades strategist Ken Berman agreed those factors, in addition to renewed violence in Gaza, “could be weighing on the renewed market optimism we have seen over the past week or so.”

However, even with rising oil prices, “shareholders seem unfazed, which is a good sign for the rest of the month,” he said in a research note.

Industrial conglomerate 3M fell more than one percent after Jefferies downgraded the company to “hold” and cut its price target on fears the company was vulnerable to inflation.

But Teva Pharmaceuticals rose nearly three percent after Berkshire Hathaway revealed it had raised its stake in the company. (Source: AFP/de)

Hot Stock Analysis: SLM Corporation (SLM)

Investors rushed to trade on SLM Corporation (NASDAQ: SLM) Wednesday, soon after a drastic change of 0.09% in the share price was observed and the stock become able to close its trade at $11.55. The stock becomes active when traders or investors changed hands with 4,637,005 shares contrast to the three-month volume average of 3.38M shares. The ratio between current volume and 3-month average value, also known as Relative volume was observed at 1.37, validating the stock’s In Play state.

Stock Technical’s & Performances to Explore:

Based on a recent bid, this stock (SLM) was trading at a distance of -7.30% from 52-week high and 19.69% away from its 52-week low price. We observed 0.17% rate of return for a stock for the last 5-trading days, which was maintained for the month at -0.43%. Likewise, the performance for the quarter was recorded as 5.77% and for the year was 2.58%. The comparison of these above mentioned historical values gives an idea to investor whether the stock is ready to shift trend (up to down or down to up) or how the stock has recovered the losses or shed gains during its historical phase. For example, if stock’s weekly and monthly performances are positive as compared to year and YTD performance percentage also seems to decrease in comparison to the previous year performance, then one can say that the stock is bouncing back and may able to gain more and more in near future and vice versa. Although stock’s historical performances are key to consider, don’t invest (or not invest) based solely on it. It’s just one measure of value. As a serious shareholder, you need to look at plentiful factors that can assist you determine whether any given stock is a good investment.

Do SMAs Signal a Trend Reversal?

Based on a recent bid, this stock (SLM) was trading at a distance of -0.24% from 20 days simple moving average, and its distance from 50 days simple moving average is 1.62% while it has a distance of 4.48% from the 200 days simple moving average. A moving average’s greatest strength is its ability to assist a trader identifies a current trend or spots a possible trend reversal. Moving averages can also identify a level of support or resistance for the security, or act as a simple entry or exit signal.

What about SLM Stock’s Volatility?

According to finviz data, SLM stock’s volatility for the week is measured at 1.27%, while for the month it is maintained at 2.15%.

An Eye on Beta Factor:

One gauge of the relative volatility of a specific stock to the market is its beta. A beta approximates the overall volatility of a security’s returns against the returns of a relevant benchmark (usually the S&P 500 is used). Presently, Beta factor for SLM stock stands at 1.21. A beta of 1 indicates that the security’s price moves with the market. A beta of less than 1 means that the security is theoretically less volatile than the market. A beta of greater than 1 indicates that the security’s price is theoretically more volatile than the market. For example, if a stock’s beta is 1.2, it’s theoretically 20% more volatile than the market. Conversely, if an ETF’s beta is 0.65, it is theoretically 35% less volatile than the market. Therefore, the fund’s excess return is predictable to underperform the benchmark by 35% in up markets and outperform by 35% during down markets.

What Do Analysts’ Recommend?

Analysts mean recommendation for the stock is 1.60, (where 1 is Strong Buy and 5 is Strong Sell).

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