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ABM Industries, Inc. (NYSE:ABM) and AutoNation, Inc. (NYSE:AN) – Technical Analysis

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Highlighting: ABM Industries, Inc. (NYSE:ABM), AutoNation, Inc. (NYSE:AN)

With the markets heavily rolling over, selling off after the recent rally, today’s report seeks to identify stocks that rebounding and revealing favorable signals for investing.   These stocks have made a bullish crossover with respect to MACD, are bullish under the Relative Strength Index (RSI) and are neutral according to stochastics.

Stocks were overwhelmingly subject to profit-taking on Friday, losing 0.95%, on average, in market value by the day’s end.   Of the 1668 stocks analyzed, 443 advanced, 1209 declined and the remaining 16 were neutral on the day.   The resulting up/down ratio of 0.37 sends a clear bearish signal after witnessing a number of bullish sessions over the past six weeks.   Volumes amongst the stocks were over 42% greater than the day previous as investors took money off the table.   With all of this money now on the sidelines, the opportunity for investors to reallocate funds amongst investments is probable, ideal for a spring rally leading up to quarterly results in April.   The percentage of stocks listed as overbought is quickly becoming more reasonable, now at 18% under RSI and 28% under stochastics.   Sectors/industries showing favorable technical indicators at present are industrials and telecommunications.

Distribution of Gains

Download link for all stocks: Today’s Technical Analysis

image Chart courtesy of StockCharts.com
AUTONATION INC (AN)
18.56  + 0.27 (1.48%)
Support 2 Support 1 Pivot Point Resistance 1 Resistance 2
17.99 18.27 18.44 18.72 18.89
Expected Short-Term Trading Range: 17.71 – 18.78
Support & Resistance Analysis Broke Lwr Resistance (1)
MACD Analysis   Positive/Increasing MACD
MACD vs. Signal Bullish MA Crossover 0.037
RSI Analysis   Bullish Centerline Crossover RSI
Stochastic (Fast) Analysis Neutral   52.173
50-Day MA Analysis Below 50-Day MA %K (fast)
200-Day MA Analysis Above 200-Day MA – Crossover 51.304
Critical Level Analysis    
AUTONATION INC (AN) Seasonality
Analysis has revealed that with a buy date of October 25 and a sell date of May 17, investors have benefited from a total return of 1715.8% over the last 10 years.   This scenario has shown positive results in 7 of those periods.
Conversely, the best return over the maximum number of positive periods reveals a buy date of March 3 and a sell date of June 1, producing a total return over the same 10-year range of 373.21% with positive results in 10 of those periods.
The buy and hold return for the past 10 years was 131%.
Comments:

The fundamentals of this company are sound and expected to see growth in earnings of around 12% over the long-term.   This places a fundamental valuation on this stock in the range of $22 -$23 and institutions have been seen heavily adding to their positions on net as a result.   The stock shows very strong seasonal growth around this time of year until June 2nd with gains of well over 20% in the period.

AutoNation Seasonal Chart

News Headlines for AUTONATION INC (AN)
[feedsnap, 3]http://us.rd.yahoo.com/finance/news/rss/add/*http://finance.yahoo.com/rss/headline?s=AN[/feedsnap]
image Chart courtesy of StockCharts.com
ABM Industries Incorporated Com (ABM)
20.26  + 0.05 (0.25%)
Support 2 Support 1 Pivot Point Resistance 1 Resistance 2
19.85 20.05 20.24 20.44 20.63
Expected Short-Term Trading Range: 19.47 – 20.65
Support & Resistance Analysis Neutral  
MACD Analysis   Bullish Centreline Crossover MACD
MACD vs. Signal Bullish MA Crossover 0.001
RSI Analysis   Bullish   RSI
Stochastic (Fast) Analysis Neutral   54.121
50-Day MA Analysis Above 50-Day MA %K (fast)
200-Day MA Analysis Above 200-Day MA 75.540
Critical Level Analysis    
ABM Industries Incorporated Com (ABM) Seasonality
Analysis has revealed that with a buy date of October 22 and a sell date of September 2, investors have benefited from a total return of 527.9% over the last 10 years.   This scenario has shown positive results in 9 of those periods.
Conversely, the best return over the maximum number of positive periods reveals a buy date of May 29 and a sell date of June 1, producing a total return over the same 10-year range of 19.31% with positive results in 10 of those periods.
The buy and hold return for the past 10 years was 156.63%.
Comments:

Looking to a company in the industrial sector, which is seeing a number of equities producing favorable technical indicators, and ABM presents itself as a potential "buy" opportunity.   With this equity, the most appealing aspect may be the technicals that it is showing, bullish in many respects.   Fundamentals, on the other hand, are average, not revealing anything that would immediately attract investors to this investment.   However, the stock does appear to be undervalued at current levels, with a fair target of at least $22 by taking into account the expected earnings growth over the next year.   Institutions have been seen snatching up shares as a result.   Seasonal influences at present are positive, but not overly so.

ABM Industries Seasonal Chart

News Headlines for ABM Industries Incorporated Com (ABM)
[feedsnap, 3]http://us.rd.yahoo.com/finance/news/rss/add/*http://finance.yahoo.com/rss/headline?s=ABM[/feedsnap]
Equity Clock – By The Numbers will be offered following each trading day.
Disclosure: Mr. Vialoux does not own securities mentioned in this report.
Disclaimer: Comments and opinions offered in this report at EquityClock.com are for information only. They should not be considered as advice to purchase or to sell mentioned securities.
Data offered in this report is believed to be accurate, but is not guaranteed.

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