Wednesday, April 22, 2015

Alliance Data Systems - Barchart's Chart of the Day

Alliance Data Systems (ADS) is the Barchart Chart of the Day.  The Financial Transactions Services company has a Trend Spotter buy signal, a Weighted Alpha of 29.60+ and gained 27.28% in the last year.

The Chart of the Day belongs to Alliance Data Systems (ADS).   I found the financial transactions services company by sorting the All Time High list for the stocks with the highest technical buy signals then used the Flipchart feature to review the charts.  Since the Trend Spotter signaled a buy on 3/16 the stock gained 6.50%.

Alliance Data Systems Corporation is a leading provider of transaction services, credit services and marketing services to retail companies in North America. They focus on facilitating and managing electronic transactions between clients and their customers through multiple distribution channels including in-store, catalog and the Internet. Their credit and marketing services assist clients in identifying and acquiring new customers, as well as helping to increase the loyalty and profitability of their existing customers.

The status of Barchart's Opinion trading systems are listed below.  Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates.  The indicator numbers shown below therefore may not match what you see live on the web site when you read this report.

Barchart technical indicators:
  • 100% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 6 new highs and up 4.50% in the last month
  • Relative Strength Index 66.68%
  • Barchart computes a technical support level at 296.44
  • Recently traded at 307.85 with a 50 day moving average of 289.33
Fundamental factors:
  • Market Cap $19.35 billion
  • P/E 23.78
  • Revenue expected to grow 23.60% this year and another 12.10% next year
  • Earnings estimated to increase by 19.20% this year, an additional 15.60% next year and continue to increase at an annual rate of 16.00% for the next 5 years
  • Wall Street analysts issued 4 strong buy, 13 buy and 7 hold recommendations on the stock
None of the normal technical trading strategies have been reliable without incurring an excessive number of trades so I'd advise using a moving stop loss 10% below the most recent high.

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