Genworth Financial Inc. [NYSE:GNW] shares are showing some interesting activity. The company’s daily low is at $3.39 as the high is reaching $3.52.
If readers are not familiar, Genworth Financial Inc. is in the Financial sector under the Insurance – Life industry. This week, we are watching the stock hit price per sales of 0.26 with an earning per share of 0.35.
As a reference point, the S&P 500 is trading 1.11% over the last 52 weeks, while GNW stock is trading -19.29%.
Wait and see
Holding a Market Cap of $2.05 billion, Genworth Financial Inc. has seen a trading range over the last year of $1.87-$4.93.
For the last five days, GNW is up from its last closing price. The average shares trading hands each day is 5.59M, with average 10-day volume coming in at 3.22 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for GNW. When we apply the Elder Force Index to Genworth Financial Inc., we are seeing an Elder Force Indicator number of 87573.84.
The recent performance of the stock is another area that can tell traders how to proceed. GNW is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 11.55. Moreover, the company’s enterprise value has gone from $1.54B to $1.92B quarter-over-quarter. This could be an inflection point for the company, but either way we believe you should be adding them to your watchlist.
In the last quarter, GNW made a profit of 148.0 million. Genworth Financial Inc. also saw quarter revenue growth year over year of 2.45%. In addition, the company has operating cash flow of $2.58 billion.
Looking at popular technical indicators, the company’s 5-day moving average is 3.45 compared to the 50-day moving average of 3.2338. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. GNW currently holds a 9-day RSI of 61.56%, while 100-day RSI stands at 51.33%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. GNW’s 9-day MACD is 0.07 and the company’s 100-day MACD stands at 0.65.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 0.96% by insiders and 73.36% by institutions. Regarding institutional holdings, Blackrock Inc. owns 9.80%, while the second top holder, Vanguard Group, Inc. (The), currently owns 7.90%.
Overall, the recommended rating for GNW is Hold. Currently, the company has 3 analysts watching the stock, and the average quarterly earnings estimate is 0.04. Quarterly revenue estimates are averaging 1.99B with the high estimate reaching 1.99B and the low at 1.99B.
To review, the current 1-year target estimate is sitting at 3.00, while the current price 3.55. Based on this, we expect some pullback on the stock over time given our above analysis.