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Back to School to Find Some Gains – Technical Analysis

Stock_Numbers

Highlighting: ITT Educational Services, Inc. (NYSE:ESI), Apollo Group, Inc. (NASDAQ:APOL), DeVry Inc. (NYSE:DV)

With stocks beaten down to extreme levels, can we find positive returns in these educational providers?   Each of these stocks have shown outperformance compared to the market as of recent and technically look to be rebounding from the lows.   Maybe they can teach us something.

Of the 1660 stocks analyzed on Thursday, only 31 advanced, while 1628 declined and 1 remained unchanged.   Losses amongst the stocks averaged 4.35% on volumes 25% greater than the day previous.   Almost 96% of stocks posted losses on the day greater than 1%, but most ended up with losses even greater than that with over half losing more than 4% in value.  Losses amongst the capitalizations returned 4.10%, 4.36% and 5.13% for Large-caps, Mid-caps, and Small-caps, respectively.  The number of stocks above their 200-day moving average has instantly deteriorated.   Around 75% of stocks were above this level just yesterday, and now it has been scaled to around 56%.   The percentage of stocks above the 50-day moving average isn’t much better, with only 10% above crucial level.  

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Download link for all stocks: Today’s Technical Analysis

image Chart courtesy of StockCharts.com
Apollo Group, Inc. (APOL)
55.61  -0.57 (-1.01%)
Support 2 Support 1 Pivot Point Resistance 1 Resistance 2
53.02 54.32 56.68 57.98 60.34
Expected Short-Term Trading Range: 54.75 – 64.68
Support & Resistance Analysis Neutral  
MACD Analysis   Negative/Increasing MACD
MACD vs. Signal Above/Widening -1.810
RSI Analysis   Bearish   RSI
Stochastic (Fast) Analysis Neutral   44.009
50-Day MA Analysis Below 50-Day MA %K (fast)
200-Day MA Analysis Below 200-Day MA 49.781
Critical Level Analysis    
Apollo Group, Inc. (APOL) Seasonality
Analysis has revealed that with a buy date of October 19 and a sell date of August 30, investors have benefited from a total return of 1353.62% over the last 10 years.   This scenario has shown positive results in 8 of those periods.
Conversely, the best return over the maximum number of positive periods reveals a buy date of March 9 and a sell date of July 4, producing a total return over the same 10-year range of 277.88% with positive results in 10 of those periods.
The buy and hold return for the past 10 years was 579.15%.
Comments:

Apollo Group has an Outperform analyst rating, but institutions have been seen divesting of shares as of recent. Fundamentals are strong with a decent history of beating earnings expectations over recent years.   Targets place this stock at around $68, or 22.3% above current levels.   Seasonality between now and September is strongly positive for gains reaching 15% on average.

Apollo Group APOL Seasonal Chart

News Headlines for Apollo Group, Inc. (APOL)
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image Chart courtesy of StockCharts.com
ITT Educational Services, Inc. (ESI)
109.64  -1.69 (-1.52%)
Support 2 Support 1 Pivot Point Resistance 1 Resistance 2
106.43 108.03 110.82 112.42 115.21
Expected Short-Term Trading Range: 102.37 – 115.52
Support & Resistance Analysis Neutral  
MACD Analysis   Negative/Increasing MACD
MACD vs. Signal Above/Widening -0.461
RSI Analysis   Above 50   RSI
Stochastic (Fast) Analysis Bearish Crossover 52.976
50-Day MA Analysis Below 50-Day MA – Crossover %K (fast)
200-Day MA Analysis Above 200-Day MA 72.858
Critical Level Analysis    
ITT Educational Services, Inc. (ESI) Seasonality
Analysis has revealed that with a buy date of March 14 and a sell date of February 7, investors have benefited from a total return of 2566.93% 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 December 27 and a sell date of November 25, producing a total return over the same 10-year range of 1731.2% with positive results in 10 of those periods.
The buy and hold return for the past 10 years was 1143.01%.
Comments:

Similar to Apollo Group, this stock has an Outperform analyst rating and institutions have been divesting of shares as well.   Fundamentals are strong and show earnings that have beaten expectations in 21 of the past 22 periods.   Targets place this stock at $128, or 16.4% above current levels.   Seasonal tendencies are positive moving forward for gains reaching 9% by July and 15% by October, on average.   The seasonal chart for this equity reveals a buy-and-hold investment.

ITT Educational Services Seasonal Chart

News Headlines for ITT Educational Services, Inc. (ESI)
[feedsnap, 3]http://us.rd.yahoo.com/finance/news/rss/add/*http://finance.yahoo.com/rss/headline?s=ESI[/feedsnap]
image Chart courtesy of StockCharts.com
DEVRY INC (DV)
61.54  -0.92 (-1.47%)
Support 2 Support 1 Pivot Point Resistance 1 Resistance 2
58.97 60.26 62.45 63.74 65.93
Expected Short-Term Trading Range: 60.4 – 71.79
Support & Resistance Analysis Broke Upr Support (1)
MACD Analysis   Negative/Increasing MACD
MACD vs. Signal Above/Widening -1.402
RSI Analysis   Bearish   RSI
Stochastic (Fast) Analysis Neutral   43.835
50-Day MA Analysis Below 50-Day MA %K (fast)
200-Day MA Analysis Above 200-Day MA 54.332
Critical Level Analysis    
DEVRY INC (DV) Seasonality
Analysis has revealed that with a buy date of October 22 and a sell date of June 13, investors have benefited from a total return of 1081.38% 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 October 22 and a sell date of April 17, producing a total return over the same 10-year range of 544.55% with positive results in 10 of those periods.
The buy and hold return for the past 10 years was 205.66%.
Comments:

Devry has a Buy analyst rating and institutions have been sharing this belief by accumulating positions on net.   Fundamentals remain strong and target the stock at $68, or 10.5% above current levels.   The seasonality is relatively flat through to October, with the period of peak seasonal strength from October through to April.   Gains over this period reach 25% on average.

DeVry DV Seasonal Chart

News Headlines for DEVRY INC (DV)
[feedsnap, 3]http://us.rd.yahoo.com/finance/news/rss/add/*http://finance.yahoo.com/rss/headline?s=DV[/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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