As I was scrolling through many many charts, I realized its very difficult these days to find a stock that trades on its own accord, without copying the (very volatile) path of the overall market. But I managed to find one which showed almost no correlation to the recent frenzy - 
AGL
Fundamentals
Technicals
AGL Fundamentals
- The underlying fundamentals of AGL are difficult to say the least, though getting better - hence the recent bump in the share price on the back of a few upgrades from analysts
- With a P/S of 0.4 we can confidently say the valuation is low, but we can't really blame the investors for taking the share price down - despite an amazing growth rate (from 4.3bn in 2023 to 6bn in 2024), the firm is unable to keep its costs and cash position in check
- With 6bn in revenue, the firm wasn't able to turn a positive gross profit(!)
- So, I wouldn't look at it yet as a long-term play, though if the firm can put its finances in order, it could be a large player in the definitely-not-getting-smaller space of senior healthcare
- But the short-term momentum is intruiging
Technicals
- First thing to note is that fascinating bifurcation from the broader market (see the relative strength indicator on the weekly); AGL was nicely treading 6% higher today while
SPY was bleeding 7% - I appreciate stocks like that during these volatile days - Plus,it has momentum - a couple of upgrade sent the stock surging and there is a gap to fill, which I would like to take advantage off
- Other than that, it doesn't really scream buy, so I am not going to sell it as a high-conviction play (no usual accumulation patterns :/) - I am currently looking at it as a diversification play with a momentum tailwind
Trade- I bought it on the recent pop higher and plan to hold until it breaks the little bottom it created after it surged (red line)
- I don't plan to marry the stock for longer, I will give it one chance and if it breaks, then I retreat - potential holding time is about a month, or about 5 U-turns in the US tariff policy
- The stock can be still entered with the same stop/loss but a slightly worse risk/reward
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If you like my content, Please leave a like, comment or a donation, it motivates me to keep producing ideas, thank you :) - I bought it on the recent pop higher and plan to hold until it breaks the little bottom it created after it surged (red line)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.