In this piece I’ll analyze some key factors for iRobot Corporation (NASDAQ:IRBT), including past and predicted earnings per share as well as the levels of current key indicators that could spell out trends for the stock.
EPS is what each share is worth and indicates how much money their sharehoders would acquire if the company was to pay out all of its profits. Earnings Per Share is computed by dividing the profit total by its share total. If a company’s profit is $800 million and there are 40 million shares, then the EPS is $20. EPS is a fantastic way to compare and contrast companies in the same industry. When a company shows a steady upwards earnings trend, it is a good indicator that the company will dominate companies with a more volatile earnings trend.
iRobot Corporation (NASDAQ:IRBT)’s EPS for the past 12 trailing months is 2.77. This year’s EPS growth stands at 47.50% while their EPS growth over the past five years is 29.00%. Analysts are predicting iRobot Corporation’s stock to grow 6.39% over the next year and 18.00% over the next five.
Let’s take a look at how the stock has been performing recently. Over the past twelve months, iRobot Corporation (NASDAQ:IRBT)’s stock was 6.94%. Over the last week of the month, it was 3.60%, -3.81% over the last quarter, and 14.97% for the past six months.
Investors have the option to employ technical indicators when conducting stock research. At the time of writing, Irobot Corp (NASDAQ:IRBT) has a 14-day Commodity Channel Index (CCI) of 130.83. Developed by Donald Lambert, the CCI is a versatile tool that may be used to help spot an emerging trend or provide warning of extreme conditions. CCI generally measures the current price relative to the average price level over a specific time period. CCI is relatively high when prices are much higher than average, and relatively low when prices are much lower than the average.
We can also do some further technical analysis on the stock. At the time of writing, the 14-day ADX for Irobot Corp (NASDAQ:IRBT) is 14.97. Many technical chart analysts believe that an ADX value over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). Some analysts believe that the ADX is one of the best trend strength indicators available.
Interested investors may be watching the Williams Percent Range or Williams %R. Williams %R is a popular technical indicator created by Larry Williams to help identify overbought and oversold situations. Investors will commonly use Williams %R in conjunction with other trend indicators to help spot possible stock turning points. Irobot Corp (NASDAQ:IRBT)’s Williams Percent Range or 14 day Williams %R currently sits at -9.75. In general, if the indicator goes above -20, the stock may be considered overbought. Alternately, if the indicator goes below -80, this may point to the stock being oversold.
Tracking other technical indicators, the 14-day RSI is presently standing at 57.02, the 7-day sits at 67.24, and the 3-day is resting at 84.23 for Irobot Corp (NASDAQ:IRBT). The Relative Strength Index (RSI) is an often employed momentum oscillator that is used to measure the speed and change of stock price movements. When charted, the RSI can serve as a visual means to monitor historical and current strength or weakness in a certain market. This measurement is based on closing prices over a specific period of time. As a momentum oscillator, the RSI operates in a set range. This range falls on a scale between 0 and 100. If the RSI is closer to 100, this may indicate a period of stronger momentum. On the flip side, an RSI near 0 may signal weaker momentum. The RSI was originally created by J. Welles Wilder which was introduced in his 1978 book “New Concepts in Technical Trading Systems”.
For further review, we can take a look at another popular technical indicator. In terms of moving averages, the 200-day is currently at 83.99, the 50-day is 88.08, and the 7-day is resting at 86.26. Moving averages are a popular trading tool among investors. Moving averages can be used to help filter out the day to day noise created by other factors. MA’s may be used to identify uptrends or downtrends, and they can be a prominent indicator for detecting a shift in momentum for a particular stock. Many traders will use moving averages for different periods of time in conjunction with other indicators to help gauge future stock price action.