3 stocks with price targets despite yesterday's range-bound session

Published: January 26 2023, 04:50 GMT+0

3 stocks with price targets despite yesterday's range-bound session

Price action reveals Caterpillar, Alibaba, Garmin Ltd as the stocks to watch as they near pivotal price targets in the near term.

Yesterday's session summary: Markets did not have a clear cut direction — Nasdaq was down 0.18% before closing the session at 11,300. S&P 500 closed at 4,016.22 after a flat day.

What is a Price Target?

A "price target" is an estimate of the future price of a stock based on earnings forecasts and assumed valuation multiples. Price targets are typically generated by respected market analysts who believe a stock to be fairly valued relative to its projected and historical earnings. Target prices are used to evaluate stocks and can help investors evaluate the potential risk/reward profile of a stock.

Buyers pushing Caterpillar towards its price target of $261.18; currently at $258.44

Caterpillar ended Tuesday at $257.61. yesterday it went up to $259.19 only to drop back, yet still managed to close at $258.44. Yesterday's gains added to Caterpillar's bullish trend that has lasted for 4 days so far, during which it increased a total of $11.86. Yesterday's trading volume was 2.42 million shares which is slightly under the 21-day average of 2.95 million.

The construction equipment, diesel and natural gas engines manufacturer is up 58.59% from the significant low of $162.44 it hit 3 months ago. The construction equipment, diesel and natural gas engines manufacturer's market cap currently stands at $134.49 billion with an average daily volume of 2.95 million shares. So far this year, it has performed better than the Dow Jones by 6.04%.

Caterpillar's recent run now faces a major challenge as concentrated supply is likely found at $261.18 with price action currently $2.74 away.

Just recently, Caterpillar's board disclosed a quarterly dividend of $1.2 per share to be paid on Friday, February 17th for all shareholders of record up until Friday, January 20th. Based on current prices, the company's decision thereby provides Caterpillar investors with an annual dividend yield of 1.86%.

Caterpillar is scheduled to announce earnings results Tuesday. The consensus Earnings Per Share estimate is 3.95 and the consensus revenue estimate is $16.11 billion.

Buyers pushing Alibaba towards its price target of $121.29; currently at $120.25

After ending Tuesday at $119.44, Alibaba went up to $120.32 only to drop back, yet still traded well overall and closed at $120.25 yesterday. Alibaba has increased a total of $6.22 over the past 5 days, with yesterday's session contributing to the uptrend. Trading volume totalled 9.48 million which equates to around 44% of the stock's 21-day average yesterday.

The Chinese tech colossus has gained 29.85% since its lowest print of $63.15 earlier this year. Currently, the Chinese technology developer has a market capitalization of $318.37 billion with an average daily trading volume of 21.64 million shares. Alibaba expected revenue of $183.92 billion with an EPS of $1.37.

Alibaba's run now faces a challenge at $121.29, which is only $1.04 away from the line. Overcoming it might send the company towards their next major resistance line— this will surely be interesting to follow.

Buyers pushing Garmin towards its price target of $98.86; currently at $98.62

After dipping down to $96.63, Garmin regained earlier losses and closed at $98.62. Yesterday's gains added to Garmin's bullish trend that has lasted for 4 days so far, during which it increased a total of $2.82. Yesterday's trading volume was 763,404 shares which is slightly below the 21-day average of 1 million.

After hitting an important low of $78.47 approximately 3 months ago, the GPS device maker has bounced back 25.09% since. Garmin's market cap is currently $18.90 billion with an average daily volume of 1 million shares. So far this year, it has been beating the S&P 500 by 0.13%. Garmin's last revenue report was $1.14 billion with an EPS of $1.41.

Garmin's recent run now faces a major challenge as concentrated supply is likely found at $98.86 with price action currently 24 cents away.

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