Hot Stock's Trend Recap: Greif Inc (NYSE: GEF) – Alpha Beta Stock

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Major world stock markets advanced on Thursday and the U.S. dollar rose to a two-week high as risk appetite returned and shareholders kept an eye on U.S. political developments and awaited a key U.S. jobs report due out on Friday.

Wall Street’s main equity indexes rose, while oil prices rebounded a day after hitting two-week lows.

A U.S. tax bill moving swiftly through Congress has influenced markets in the past month, with shareholders hoping that deep cuts to corporate tax rates will assist further drive the record-setting run in equities.

U.S. Senate Republicans agreed to talks with the House of Representatives on sweeping tax legislation on Wednesday, amid early signs that lawmakers could bridge their differences and agree on a final bill ahead of a self-imposed Dec. 22 deadline. “We are kind of in a cautious wait-and-see mode trying to determine what the tax policy in the U.S. is going to yield and to what extent that might propel further growth from here,” said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.

“Obviously, we have had a very strong run in the markets here in the U.S. in the past year and I think they are probably looking at tax policy as a key to continuing that,” Jankovskis said.

Shareholders were also wary of U.S. negotiations over a spending package.

U.S. President Donald Trump will face off with Democratic leaders of Congress on Thursday in a meeting intended to bridge differences over a spending bill and prevent a government shutdown. (Source: Reuters)

The Dow Jones Industrial Average rose 45.15 points, or 0.19 percent, to 24,186.06, the S&P 500 gained 7.34 points, or 0.28 percent, to 2,636.61 and the Nasdaq Composite added 45.05 points, or 0.66 percent, to 6,821.42.

Stock in Focus: Greif, Inc. (NYSE: GEF)

Greif, Inc. (NYSE: GEF) has grabbed attention from the analysts when it experienced a change of 13.88% in the current trading session to trade at $62.44. A total of 603,654 shares exchanged hands during the intra-day trade contrast with its average trading volume of 224.41K shares, while its relative volume stands at 8.21. Relative volume is the comparison of current volume to average volume for the same time of day, and it’s displayed as a ratio. If RVOL is less than 1 it is not In Play on this trading day and Investors may decide not to trade it.  If RVOL is above 2 it is In Play and this is more evidence Investors ought to be in the name.  When stocks are *very* In Play one can see a RVOL of 5 and above.  The higher the RVOL the more In Play the stock is.

Day traders strive to make money by exploiting minute price movements in individual assets (usually stocks, though currencies, futures, and options are traded as well), usually leveraging large amounts of capital to do so, therefore they trade on Stocks in Play. In Play Stocks are volatile enough to produce good risk and reward trading opportunities for both bull and bear traders intraday. Most company stocks have very little volatility. They generally move extremely slowly and they only produce big price swings when the company produces good or bad trading results, which may only happen a couple of times a year at best.

In deciding what to focus on – in a stock, say – a typical day trader looks for three things: liquidity, volatility and trading volume. Liquidity allows an investor to enter and exit a stock at a good price (i.e. tight spreads, or the difference between the bid and ask price of a stock, and low slippage, or the difference between the predictable price of a trade and the actual price). If a stock does not have good liquidity then it may take some time before a broker is able to negotiate a deal to buy or sell a stock and the broker may not be able to get the sell or buy price that the trader is looking for. This is a problem for day traders and it could mean the difference between a profitable and non-profitable trade.

Traders have different rules for what constitutes liquidity and a good guide is the volume of trades and volume of shares that are traded each day. 100,000 shares traded per day would be a minimum for most traders and some require 1,000,000.

Trading volume is a gauge of how many times a stock is bought and sold in a given time period (most commonly, within a day of trading, known as the average daily trading volume – ADTV). A high degree of volume indicates a lot of interest in a stock. Often, a boost in the volume of a stock is a harbinger of a price jump, either up or down.

Volatility is simply a measure of the predictable daily price range—the range in which a day trader operates. More volatility means greater profit or loss. After a recent check, Greif, Inc. (NYSE: GEF) stock is found to be 3.55% volatile for the week, while 2.27% volatility is recorded for the month.

Greif Inc. on Wednesday stated fiscal fourth-quarter net income of $33.3 million, after reporting a loss in the same period a year earlier.

On a per-share basis, the Delaware, Ohio-based company said it had profit of 57 cents. Earnings, adjusted for non-recurring costs, came to 98 cents per share.

The industrial packaging company posted revenue of $968.1 million in the period.

For the year, the company stated net income of $118.6 million, or $2.02 per share, swinging to a profit in the period. Revenue was stated as $3.64 billion.

Greif anticipates full-year earnings in the range of $3.25 to $3.55 per share. (Source: AP)

Dividend: On December 5, 2017, the Board of Directors declared quarterly cash dividends of $0.42 per share of Class A Common Stock and $0.62 per share of Class B Common Stock. Dividends are payable on January 1, 2018, to stockholders of record at the close of business on December 18, 2017.

Technical’s Snapshot:

The stock has a market cap of $2.78B and the number of outstanding shares has been calculated 50.71M. Based on a recent bid, its distance from 20 days simple moving average is 17.56%, and its distance from 50 days simple moving average is 12.68% while it has a distance of 11.05% from the 200 days simple moving average. The company’s distance from 52-week high price is -0.95% and the current price is 23.15% away from 52-week low price. The company has Relative Strength Index (RSI 14) of 76.95 together with Average True Range (ATR 14) of 1.30.

Stock’s Valuation:

Past 5 years growth of GEF observed at -15.80%, and for the next five years the analysts that follow this company is expecting its growth at 8.67%. The stock’s price to sales ratio for trailing twelve months is 0.79 and price to book ratio for the most recent quarter is 2.54, whereas price to cash per share for the most recent quarter are 29.39. Its quick ratio for the most recent quarter is 1.10. Analysts mean recommendation for the stock is 2.30. This number is based on a 1 to 5 scale where 1 indicates a Strong Buy recommendation while 5 represents a Strong Sell.

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