Seasonality Watch: Owens-Illinois, Inc. (NYSE:OI)
Setting Up
Stocks that have recently indicated possible entry points according to technical indicators and currently trade within or are approaching their period of seasonal strength.
Owens-Illinois, Inc. (NYSE:OI)
Owens-Illinois is approaching its period of strength that ranges from October through to January (and beyond into May) for average gains topping 20% over the period. The stock has been showing signs of bottoming over the long-term and technicals show a Bullish Crossover with respect to MACD – a buy signal. The stock has also been outperforming the market for the past few days. With a current P/E of just over 10 and a forward P/E of around 8.6, a target on the stock of $36, or a gain of approximately 25%, is revealed should current estimates hold true. Owens-Illinois, Inc. (NYSE:OI) also maintains an analyst “buy” rating.
| Owens-Illinois, Inc. (OI) 28.85 | + 0.79 (2.82%) | ||||||||||||||||||
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| Seasonality Analysis | |||||||||||||||||||
| Analysis has revealed that with a buy date of October 10 and a sell date of May 17, investors have benefited from a total return of 1837.37% 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 October 10 and a sell date of January 11, producing a total return over the same 10-year range of 1116.26% with positive results in 10 of those periods. | |||||||||||||||||||
| The buy and hold return for the past 10 years was 31.17%. | |||||||||||||||||||
| Technical Analysis | |||||||||||||||||||
| Support 2 | Support 1 | Pivot Point | Resistance1 | Resistance2 | The Numbers | ||||||||||||||
| 28.19 | 28.52 | 28.79 | 29.12 | 29.39 | Most Recent Close: | 28.85 | |||||||||||||
| Support/Resistance Analys | Broke Upr Resistance (2) | 52-Week High: | 39.56 | ||||||||||||||||
| MACD Analysis: | Positive/Increasing | 52-Week Low: | 24.92 | ||||||||||||||||
| MACD vs. Signal: | Bullish MA Crossover | Fib. Retracement: | ~ 23.6% | ||||||||||||||||
| RSI Analysis: | Bullish | 50-Day MA: | 27.49 | ||||||||||||||||
| Stochastic (Fast) Analysis: | Neutral | 200-Day MA: | 30.41 | ||||||||||||||||
| 50 vs 200-Day MA Analysis: | 50-day Below 200-Day MA | High Critical Level: | 29.06 | ||||||||||||||||
| Year over Year Trend: | Strongly Declining | Low Critical Value: | 25.74 | ||||||||||||||||
| Critical Level Analysis: | Within Critical Levels | Average Monthly Gain: | -1.7% | ||||||||||||||||
| MFI Analysis | Below 50 Declining | Technical Rating: | 8 | ||||||||||||||||
| Candlestick Analysis | Neutral/Indecision | On a scale of 1 to 10, the higher the rating, the more appealing the investment is to buy at current levels. | |||||||||||||||||
| Situational Analysis | |||||||||||||||||||
| Past Year | Advancing Sessions % | Return % | 10-Year Average | Advancing Sessions % | Return % | ||||||||||||||
| Oct 3 thru Nov 2 | 38.1 | -12.3 | Oct 3 thru Nov 2 | 52.1 | 5.7 | ||||||||||||||
| Best Return: 9.1% – Sell Oct 8 | Best Return: 13.7% – Sell Oct 20 | ||||||||||||||||||
| Oct 3 thru Jan 1 | 46.8 | -7.7 | Oct 3 thru Jan 1 | 52.9 | 21.9 | ||||||||||||||
| Best Return: 9.1% – Sell Oct 8 | Best Return: 31.3% – Sell Nov 25 | ||||||||||||||||||
| Oct 3 thru Apr 1 | 54 | 2.6 | Oct 3 thru Apr 1 | 52.1 | 44.8 | ||||||||||||||
| Best Return: 9.1% – Sell Oct 8 | Best Return: 60.7% – Sell Jan 30 | ||||||||||||||||||
| Further Analysis | |||||||||||||||||||
| Sector: | Materials | Industry: | Packaging & Containers | ||||||||||||||||
| According to Thackray’s 2010 Investors Guide, the period of seasonal strength for the Materials Sector ranges from November 19th through to May 5th. Seasonal strength in the sector corresponds with the traditional period when demand for base materials increase. | |||||||||||||||||||
| Current Consensus Recommend: | Outperform | ||||||||||||||||||
| Recommendation 1-Month Ago: | Outperform | ||||||||||||||||||
| Recommendation 3-Months Ago: | Outperform | ||||||||||||||||||
| Disclaimer | |||||||||||||||||||
| Analysis, comments, calculations, and opinions offered in this report, available via 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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Stocks mentioned in this post: OI
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