Summary
Applied Optoelectronics (AAIO) has shown exceptional price appreciation, gaining 145.98% since a Trend Seeker buy signal on 11/7, with strong technical indicators.
The company designs and sells fiber-optic networking products, with significant market presence in the U.S., Taiwan, and China.
Fundamental factors show a market cap of $1.88 billion, with revenue expected to grow 14.43% this year and 104.95% next year.
Despite strong technical performance, analysts' opinions are mixed, with some rating it a strong sell and others issuing strong buy recommendations.
The Chart of the Day belongs to the fiber optics company Applied Optoelectronics AAIO. I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 11/7 the stock gained 145.98%.
Applied Optoelectronics, Inc. designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers. The company sells its products to internet data center operators, cable television, telecom equipment manufacturers, fiber-to-the-home, and internet service providers through its direct and indirect sales channels. Applied Optoelectronics, Inc. was incorporated in 1997 and is headquartered in Sugar Land, Texas.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 112.02 Weighted Alpha
- 163.97% gain in the last year
- Trend Seeker buy signal
- 2.37 - 60 month Beta
- Above its 20, 50 and 100 day moving averages
- 16 new highs and up 168.48% in the last month
- Relative Strength Index 83.22%
- Technical support level at $39.89
- Recently traded at $44.03 with 50 day moving average of $22.70
Fundamental Factors:
- Market Cap $1.88 billion
- Revenue expected to grow 14.43% this year and another 104.95% next year
- Earnings are estimated to increase by 191.02 next year
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analyst gave 2 strong buy, 1 buy and 1 hold opinion on the stock
- Analysts' price targets are between $14.00 and $22.70
- Value Line rates the stock its average rating of 3
- CFRA's MarketScope rates the stock a strong sell
- MorningStar thinks the stock is 33 over valued
- 19,310 investors monitor the stock on Seeking Alpha
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
