An interesting stock that came up in some of our conversations today is Guess’, Inc. (NYSE:GES). At current price of $7.74, the shares have already lost -1.06 points (-12.06% lower) from its previous close of $8.8. Should you buy or avoid them? The stock sets an active trading volume day with a reported 2838837 contracts so far this session. GES shares had a relatively better volume day versus average trading capacity of 1.37 million shares, but with a 40.29 million float and a 3.53% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for GES stock indicates that the average analyst price target is $22.8 per share. This means the stock has a potential increase of 194.57% from where the GES share price has been trading recently.
During the recent trading session for Guess’, Inc. (NYSE:GES), the company witnessed their stock drop by $-1.36 over a week and tumble down $-13.19 from the price 20 days ago. When compared to their established 52-week high of $23.58, the high they recorded in their recent session happens to be higher. Their established 52-week high was attained by the company on 01/17/20. The recent low of $3.64 stood for a -67.18% since 03/18/20, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.01 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.
Looking at the current readings for Guess’, Inc., the two-week RSI stands at 32.3. This figure suggests that GES stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current GES readings is similarly very revealing as it has a stochastic reading of 25.4% at this stage. This figure means that GES share price today is being overbought.
Technical chart claims that Guess’, Inc. (GES) would settle between $11.73/share to $14.66/share level. However, if the stock price goes below the $5.19 mark, then the market for Guess’, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $1.58 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -1.39. 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 Telsey Advisory Group lifted target price for shares of GES but were stick to Market Perform recommendation for the stock in their opinion released on March 19. The price target has been raised from $24 to $7. Cowen analysts bumped their rating on Guess’, Inc. (NYSE:GES) stock from Market Perform to Outperform in a separate flash note issued to investors on December 17. Analysts at Telsey Advisory Group are sticking to their Market Perform stance. However, on April 23, they lifted price target for these shares to $19 from $22.
GES equity has an average rating of 2, 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 Guess’, Inc. (NYSE:GES) 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, GES stock price is currently trading at 5.82X forward 12-month Consensus EPS estimates, and its P/E ratio is 6.6 while for the average stock in the same group, the multiple is 17.9. Guess’, Inc. current P/B ratio of 0.9 means it is trading at a discount against its industry’s 4.7.