What Do Analysts’ Recommend? – Diamond Offshore Drilling Inc (NYSE: DO)

U.S. stocks rose on Monday and gains in industrials assisted propel the Dow to a more than two-month closing high, after a truce between the United States and China calmed fears that a trade war might be imminent.

U.S. Treasury Secretary Steven Mnuchin’s comments over the weekend that the two countries had put the prospect of a trade war “on hold” and agreed to hold more talks to boost U.S. exports to China boosted stocks at the opening, with the Dow Jones Industrial Average leading the charge higher.

Mnuchin said on Sunday the United States and China had agreed to drop their tariff threats, and China on Monday praised a noteworthydialing back of tensions.

The S&P industrial sector advanced 1.5 percent. Boeing Co (BA), which sells about a fourth of its commercial aircraft to Chinese customers, jumped 3 percent. It was the biggest percentage gainer on the Dow and lifted the blue-chip index.

The Russell 2000 rose 0.66 percent to hit a record closing high for a fourth straight session, though the index of small-cap companies underperformed large caps.

The Dow Jones Industrial Average rose 298.20 points, or 1.21 percent, to 25,013.29, the S&P 500 gained 20.04 points, or 0.74 percent, to 2,733.01, and the Nasdaq Composite added 39.70 points, or 0.54 percent, to 7,394.04.

General Electric (GE) advanced 1 percent. It confirmed on Monday it will merge its transportation business with rail equipment maker Wabtec (WAB), which jumped about 3 percent.

Micron Technology Inc (MU) rose 3 percent, the most on the S&P, after the chipmaker lifted its current-quarter forecast.

Tesla (TSLA) jumped 2 percent on pricing of the Model 3’s fully loaded version and after brokerage Berenberg raised its already bullish price target. (Source: Reuters)

Hot Stock Analysis: Diamond Offshore Drilling Inc (NYSE: DO)

Investors rushed to trade on Diamond Offshore Drilling Inc (NYSE: DO) Monday, soon after a drastic change of 1.53% in the share price was observed and the stock become able to close its trade at $19.90. The stock becomes active when traders or investors changed hands with 2,144,463 shares contrast to the three-month volume average of 1.75M shares. The ratio between current volume and 3-month average value, also known as Relative volume was observed at 1.23, validating the stock’s In Play state.

Stock Technical’s & Performances to Explore:

Based on a recent bid, this stock (DO) was trading at a distance of -2.50% from 52-week high and 97.91% away from its 52-week low price. We observed 4.85% rate of return for a stock for the last 5-trading days, which was maintained for the month at 4.90%. Likewise, the performance for the quarter was recorded as 43.06% and for the year was 48.18%. The comparison of these above mentioned historical values gives an idea to investor whether the stock is ready to shift trend (up to down or down to up) or how the stock has recovered the losses or shed gains during its historical phase. For example, if stock’s weekly and monthly performances are positive as compared to year and YTD performance percentage also seems to decrease in comparison to the previous year performance, then one can say that the stock is bouncing back and may able to gain more and more in near future and vice versa. Although stock’s historical performances are key to consider, don’t invest (or not invest) based solely on it. It’s just one measure of value. As a serious shareholder, you need to look at plentiful factors that can assist you determine whether any given stock is a good investment.

Simple Moving Averages (SMAs) in Focus:

Moving averages is one of the key indicator and the most powerful tool used by traders. A simple moving average is easy to calculate, which allows it to be employed fairly quickly and easily. A textbook definition of a moving average is an average price for a security using a specified time period. The simplest form of a moving average, appropriately known as a simple moving average (SMA), is calculated by taking the arithmetic mean of a given set of values. For example, to calculate a basic 10-day moving average you would add up the closing prices from the past 10 days and then divide the result by 10. If a trader wishes to see a 50-day average instead, the same type of calculation would be made, but it would include the prices over the past 50 days and the same process goes on for 200 days.

Do SMAs Signal a Trend Reversal?

Based on a recent bid, this stock (DO) was trading at a distance of 4.79% from 20 days simple moving average, and its distance from 50 days simple moving average is 14.84% while it has a distance of 25.26% from the 200 days simple moving average. A moving average’s greatest strength is its ability to assist a trader identifies a current trend or spots a possible trend reversal. Moving averages can also identify a level of support or resistance for the security, or act as a simple entry or exit signal.

Stock’s Volatility Analysis:

Volatility is the degree of variation of a trading price series over time as measured by the standard deviation of logarithmic returns. It generally deals with the amount of uncertainty or risk about the size of changes in a security’s value. It can either be calculated by means of the standard deviation or variance between returns from that same security or market index. The Rule of thumb is higher the volatility, the riskier the security. A higher volatility means that a security’s value can potentially be spread out over a larger range of values. This means that the price of the security can change dramatically over a short time period in either direction. A lower volatility means that a security’s value does not fluctuate dramatically, but changes in value at a steady pace over a period of time.

What about DO Stock’s Volatility?

According to finviz data, DO stock’s volatility for the week is measured at 3.74%, while for the month it is maintained at 3.84%.

An Eye on Beta Factor:

One gauge of the relative volatility of a specific stock to the market is its beta. A beta approximates the overall volatility of a security’s returns against the returns of a relevant benchmark (usually the S&P 500 is used). Presently, Beta factor for DO stock stands at 1.16. A beta of 1 indicates that the security’s price moves with the market. A beta of less than 1 means that the security is theoretically less volatile than the market. A beta of greater than 1 indicates that the security’s price is theoretically more volatile than the market. For example, if a stock’s beta is 1.2, it’s theoretically 20% more volatile than the market. Conversely, if an ETF’s beta is 0.65, it is theoretically 35% less volatile than the market. Therefore, the fund’s excess return is predictable to underperform the benchmark by 35% in up markets and outperform by 35% during down markets.

What Do Analysts’ Recommend?

Analysts mean recommendation for the stock is 3.50, (where 1 is Strong Buy and 5 is Strong Sell).

Disclaimer: Any news, report, research and analysis published on Stockspen.com are only for information purposes. Stocks Pen (SP) makes sure to keep the information up to date and correct, but we didn’t suggest or recommend buying or selling of any financial instrument, unless that information is subsequently confirmed on your own. Information in this release is fact checked and produced by competent editors of Stocks Pen; however, human error can exist.

David Rich

David Rich

I am David Rich and I focus on breaking news stories and ensuring we (“Stocks Pen”) offer timely reporting on some of the most recent stories released through market wires about “Basic Materials” Sector companies. I have formerly spent over 5 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for “Stocks Pen” specializing in quicker moving active shares with a short term view on investment opportunities and trends.