LONG AYX REVERSAL, STRONG SUPPORT, RSI OVERSOLD, SWING TRADE
The fundamental's are actually at a decent spot. Main reason why it went was due to guidance forecast not being increased significantly which makes this an overreaction news. The current price is at it's STRONGEST SUPPORT level based on the last few years of formation. Combing it with the RSI being oversold at 20 it's another indicator reflecting it be oversold and undervalued.
Forecast:
Using the Bloomberg terminal the average one year target price for AYX is $150. This will yield a 55%+ return from its current price. Its high target price is at $180 and it's low target price is at $100. Considering the stock price is already at $83 or 17% down from the lowest target price only leaves it for an upside after the correction it had. If it reaches the high TP of 180 it leaves an upside of +$97 or (216%). Clearly there is more upside in this investment then downside.
In terms of the Industry Analysis; the technology sector is outperforming every other industry. AYX is classified under software sub industry which is one of the best performing sub industries. The company is well diversified across the world and sells it's services in every industry which will be essential right now due to some sectors suffering due to covid-19. The services this company provide help reduce cost through automation, efficiency, and simplified programming integration therefore companies using these services will not cut this service out of there budget since its essential.
Overall, the current price makes this company undervalued. The strongest support level has been reached due to an over-reaction but is positioned to do well due it's diversification, sub industry analysis, price target, technical analysis. The whole market had a correction; on the month Tech is down 5.6% and 1 week Tech is down 2.68%. Therefore it's no surprise the company fell more than the typical market correction among other variables.
The fundamental's are actually at a decent spot. Main reason why it went was due to guidance forecast not being increased significantly which makes this an overreaction news. The current price is at it's STRONGEST SUPPORT level based on the last few years of formation. Combing it with the RSI being oversold at 20 it's another indicator reflecting it be oversold and undervalued.
Forecast:
Using the Bloomberg terminal the average one year target price for AYX is $150. This will yield a 55%+ return from its current price. Its high target price is at $180 and it's low target price is at $100. Considering the stock price is already at $83 or 17% down from the lowest target price only leaves it for an upside after the correction it had. If it reaches the high TP of 180 it leaves an upside of +$97 or (216%). Clearly there is more upside in this investment then downside.
In terms of the Industry Analysis; the technology sector is outperforming every other industry. AYX is classified under software sub industry which is one of the best performing sub industries. The company is well diversified across the world and sells it's services in every industry which will be essential right now due to some sectors suffering due to covid-19. The services this company provide help reduce cost through automation, efficiency, and simplified programming integration therefore companies using these services will not cut this service out of there budget since its essential.
Overall, the current price makes this company undervalued. The strongest support level has been reached due to an over-reaction but is positioned to do well due it's diversification, sub industry analysis, price target, technical analysis. The whole market had a correction; on the month Tech is down 5.6% and 1 week Tech is down 2.68%. Therefore it's no surprise the company fell more than the typical market correction among other variables.