Shareholder returns and stock trends
So far in the series, we’ve discussed the market expectations for FireEye’s (FEYE) soon-to-be-announced fiscal 4Q17 results. Now let’s see what the technical indicators say about FEYE stock.
Technical analysis helps us identify stock trends, but these don’t make sense unless we compare them to concurrent fundamental trends. Fundamental analysis is a comprehensive analysis of a stock, which starts with the overall economy and industry conditions and proceeds to the financial analysis of a company in an effort to arrive at the intrinsic value of a stock. Both technical and fundamental analysis are parts of equity analysis.
On January 29, 2017, FireEye’s last trading price was $15.43. The stock was trading 3.0% above its 20-day moving average of $15.00, 10.0% above its 50-day moving average of $14.00, and 3% above its 100-day moving average of $15.00.
On January 29, 2017, FireEye (FEYE) stock, after several ups and downs, rose ~13.8% in the trailing-12-month period. In the trailing-one-month period, it has risen ~6%.
By comparison, Cisco Systems (CSCO) has generated returns of 10.2%, while Symantec (SYMC) has fallen 6.4% in the trailing-one-month period. Palo Alto Networks (PANW) has generated a return of ~5.7% during the same period.
A company’s MACD (moving average convergence divergence) is helpful in gauging its stock price’s movement trend. MACD refers to the difference between a stock’s short-term and long-term moving averages.
FireEye’s 14-day MACD stands at 0.21. This is a positive figure and so it indicates an upward trading trend.
Continue to the next and final part of this series for a look at FireEye’s (FEYE) current valuation.