During the recent trading sessions stock of Kindred Healthcare, Inc. (NYSE:KND) was gathering the crowd in the stock market. Analysts often use price and volume data to predict future stock performance. In the case of KND, the chart has some interesting things to say about where the stock might be headed.
How has the stock performed recently?
Kindred Healthcare, Inc. (NYSE:KND) has been trading in a bullish manner, based on the relative positions of the stock’s 20 and 200 day moving averages. In the last month, the price of KND has decreased -30.22%. Shares are now down -34.64% over the past year, underperforming the broad market by -354.52% and outperformed a peer group of similar companies by 158%. After the latest session, which saw the stock close at a price of $7.85, KND sits -36.28% below its 52-week high.
Of course, these surface-level price movements don’t tell us much about the direction that KND may be headed in the future. To forecast a stock’s future performance, analysts use momentum indicators, which take into account the size and speed of these price movements. As momentum begins to slow, it may be a sign that a recent trend is about to reverse. Two such indicators are the RSI (Relative Strength Index) and the Stochastic %k Oscillator, which fluctuate on a scale of 0 to 100. A reading above 70 indicates that a stock is overvalued, and a reading below 30 implies that it is undervalued. The 20-day RSI for KND is 25.37%, which suggests that the stock may be primed for a trend reversal or a breakout to the upside. The 20-day Stochastic %k measure, which sits at 4.22%, tells a similar story, and suggests that KND currently trades in oversold territory.
What do the trading volumes reveal?
Volume patterns can also be useful for predicting future performance. When trading activity is abnormally high, it’s often a sign that the market feels particularly strong in one way or another about the future direction of a stock. Kindred Healthcare, Inc. (KND) average trading volume of 1,083,630 during the past month is 12.07% below its average volume over the past year, indicating that investors have been less active than usual in the stock in recent times.
What do the analysts think?
KND is currently undervalued by -21.5% relative to the average 1-year price target of $10.00 taken from a group of Wall Street Analysts. The average investment recommendation on a scale of 1 to 5 (1 being a strong buy, 3 a hold, and 5 a sell) is 3.30, which implies that analysts are generally neutral in their outlook for KND over the next year.
How risky is the stock?
When predicting the future performance for a stock, it’s also important to take into account risk. To do this, analysts often use a stock’s beta, which measures the stock’s volatility relative to the overall market.
Kindred Healthcare, Inc. (NYSE:KND) has a beta of 1.24, compared to a beta of 1 for the market, which implies that the stock’s price movements are more extreme than the market as a whole. KND therefore has an above average level of market risk. During the past couple of weeks, KND average daily volatility was 63.09%, which is -11.26 percentage points higher than the average volatility over the past 100 days.