An interesting stock that came up in some of our conversations today is Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH). At current price of $5.55, the shares have already added 0.21 points (3.84% higher) from its previous close of $5.34. Should you buy or avoid them? The stock sets an active trading volume day with a reported 231099 contracts so far this session. SPWH shares had a relatively better volume day versus average trading capacity of 421.46 thousand shares, but with a 41.63 million float and a -1.29% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for SPWH stock indicates that the average analyst price target is $6.13 per share. This means the stock has a potential increase of 10.45% from where the SPWH share price has been trading recently which is between $5.16 and $5.35. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $5. Flipping the other side of the coin, an analyst who is fully bullish set a price target as high as $8.
During the recent trading session for Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH), the company witnessed their stock rise $0.32 over a week and surge $0.57 from the price 20 days ago. When compared to their established 52-week high of $6.69, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 02/27/19. The recent low of $3.41 stood for a -17.12% since 05/30/19, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0.27 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to. At the moment, the median target price for SPWH is set at $5.75, a figure which is below the recent 1-year high the stock witnessed.
Looking at the current readings for Sportsman’s Warehouse Holdings, Inc., the two-week RSI stands at 70.59. This figure suggests that SPWH stock, for now, is oversold, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current SPWH readings is similarly very revealing as it has a stochastic reading of 90.71% at this stage. This figure means that SPWH share price today is being oversold.
Technical chart claims that Sportsman’s Warehouse Holdings, Inc. (SPWH) would settle between $5.41/share to $5.47/share level. However, if the stock price goes below the $5.22 mark, then the market for Sportsman’s Warehouse Holdings, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $5.09 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.1. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at Piper Jaffray raised their recommendation on shares of SPWH from Neutral to Overweight in their opinion released on January 18. Robert W. Baird analysts have lowered their rating of Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH) stock from Outperform to Neutral in a separate flash note issued to investors on March 15. Analysts at DA Davidson are sticking to their Buy stance. However, on December 27, they lifted price target for these shares to $8 from $6.50.
SPWH equity has an average rating of 1.79, with the figure leaning towards a bullish end. 5 analysts who tracked the company were contacted by Reuters. Amongst them, 1 rated the stock as a hold while the remaining 4 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 4 analysts rated Sportsman’s Warehouse Holdings, Inc. (NASDAQ:SPWH) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, SPWH stock price is currently trading at 9.02X forward 12-month Consensus EPS estimates, and its P/E ratio is 10.1 while for the average stock in the same group, the multiple is 19.2. Sportsman’s Warehouse Holdings, Inc. current P/B ratio of 2.6 means it is trading at a discount against its industry’s 2.7.