During the recent trading sessions stock of Equifax Inc. (NYSE:EFX) was gathering the crowd in the stock market. Analysts often use price and volume data to predict future stock performance. In the case of EFX, the chart has some interesting things to say about where the stock might be headed.
How has the stock performed recently?
Equifax Inc. (NYSE:EFX) in the last month has decreased -32.41%. Shares are now down -26.72% over the past year, underperforming the broad market by -254.18% and underperformed a peer group of similar companies by -1198%. After the latest session, which saw the stock close at a price of $96.66, EFX sits -34.25% below its 52-week high. Equifax Inc. (NYSE:EFX) has been trading in a bullish manner, based on the relative positions of the stock’s 20 and 200 day moving averages.
Of course, these surface-level price movements don’t tell us much about the direction that EFX may be headed in the future. In order to predict this, technical analysts look at momentum indicators, which measure the speed and magnitude of these price movements. The idea is that as momentum slows, it may signal the approach of key support or resistance levels and a reversal of recent trends. 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 EFX is 16.41%, 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 10.03%, tells a similar story, and suggests that EFX 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. Equifax Inc. (EFX) average trading volume of 4,584,980 during the past month is 329.05% above its average volume over the past year, indicating that investors have been more active than usual in the stock in recent times.
What do the analysts think?
EFX is currently undervalued by -36.93% relative to the average 1-year price target of $153.25 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 1.90, which implies that analysts are generally bullish in their outlook for EFX 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.
Equifax Inc. (NYSE:EFX) has a beta of 0.94, compared to a beta of 1 for the market, which implies that the stock’s price movements are less extreme than the market as a whole. EFX therefore has a below average level of market risk. During the past couple of weeks, EFX average daily volatility was 88.79%, which is -49.68 percentage points higher than the average volatility over the past 100 days.