Beacon Roofing Supply, Inc. (NASDAQ:BECN) is among the top gainers of the stock market today, skyrocketing 12.36% or (1.9 points) to $17.27 from its previous close of $15.37. Does this growth mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 316867 contracts so far this session. BECN shares had a relatively better volume day versus average trading capacity of 654.71 thousand shares, but with a 54.57 million float and a -4.89% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for BECN stock indicates that the average analyst price target is $32.62 per share. This means the stock has a potential increase of 88.88% from where the BECN share price has been trading recently.
During the recent trading session for Beacon Roofing Supply, Inc. (NASDAQ:BECN), the company witnessed their stock rise $2.22 over a week and tumble down $-12.98 from the price 20 days ago. When compared to their established 52-week high of $40, the high they recorded in their recent session happens to be higher. Their established 52-week high was attained by the company on 08/05/19. The recent low of $11.66 stood for a -56.82% since 03/23/20, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 1.66 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 Beacon Roofing Supply, Inc., the two-week RSI stands at 38.7. This figure suggests that BECN 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 BECN readings is similarly very revealing as it has a stochastic reading of 17.59% at this stage. This figure means that BECN share price today is being overbought.
Technical chart claims that Beacon Roofing Supply, Inc. (BECN) would settle between $16.31/share to $17.24/share level. However, if the stock price goes below the $13.7 mark, then the market for Beacon Roofing Supply, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $12.02 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.81. 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 Berenberg, assumed coverage of BECN assigning Hold rating, according to their opinion released on January 14. Northcoast analysts bumped their rating on Beacon Roofing Supply, Inc. (NASDAQ:BECN) stock from Neutral to Buy in a separate flash note issued to investors on January 07. Analysts at Loop Capital, made their first call for the equity with a Buy recommendation, according to a research note that dated back to January 07.
BECN equity has an average rating of 2.71, with the figure leaning towards a bullish end. 17 analysts who tracked the company were contacted by Reuters. Amongst them, 12 rated the stock as a hold while the remaining 5 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 4 analysts rated Beacon Roofing Supply, Inc. (NASDAQ:BECN) as a buy or a strong buy while 1 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, BECN stock price is currently trading at 5.24X forward 12-month Consensus EPS estimates, and its P/E ratio is 0 while for the average stock in the same group, the multiple is 17.2. Beacon Roofing Supply, Inc. current P/B ratio of 0.6 means it is trading at a discount against its industry’s 1.7.