Versum Materials, Inc. (VSM) Is Rebalancing, Another Reason For Caution

For most investors, the -0.5% change in Versum Materials, Inc., (VSM) could have prompted them to sell the stock, but doing that would be a mistake as it would be taking into consideration only the short-term performance of the stock. The stock closed August 05, 2019 trading at $51.65 which saw downtrend of 86.33% since the beginning of 2019. The price of the stock has risen by 2.61% from average 12-month price target of $53 expected by the analysts. Most analysts believed that the stock has the potential to rise by 2.61% or more. For Versum Materials, Inc. to record further gain analysts believe that the company has to hit $53 price target. The high price target for VSM for next 12 months currently stands at $53. This means that the highest 12 months price target is 2.61% above its last closing price. The median price target for the stock over the next 12 months is $53, which means that it could rise by 2.61% from its current position. Despite that, some analysts believe that it won’t perform excellent, setting a lower price target of $53 for the stock which means it could rise by 2.61%.

A look at the VSM stock today shows that it has gained 32.23% of its value over the past one year, which has led to some investors becoming excited about the short-term performance of Versum Materials, Inc. (NYSE:VSM). If we turn to the stock analysts in general, they revealed that most of them are still bearish about the chances of the shares. The consensus rating from analysts for Versum Materials, Inc. (VSM) is 3 which is a sell rating. Over the past week, the stock has been rated as a Buy 0 times while it has been rated as a Hold 5 times. The 52-week high price for VSM is $52.58 which is attained on May 01 while its 52-week low currently stands at $25.02 and was reached on December 24. At the moment, the stock is trading $4.84 above its YTD moving average set at $46.81.

Moving on, Versum Materials, Inc. (VSM) last released its earnings for the March 2019 quarter of the fiscal year. The company performed lower over the past three months, with its earnings down -3% year-over-year at $0.57. The company brought a surprise of 0 as analysts were predicting $0.57 per share. The revenue generated by Versum Materials, Inc. in the March 2019 quarter declined by -4% to reach $326.2 million. This is low compared to the $340.7 million it recorded in the same quarter last year. To see what traders should watch in its June 2019 financial results, analysts have consensus earnings per share of $0.61 which is lower than the $0.63 recorded in the same quarter a year ago. Over the next 12 months, the earnings per share are expected to move by 6.28%. If it achieves that, then the company firmly believes that its long-term annual earnings growth rate target set at 16.4 % could be achieved. The company has also recorded a revenue of $1.37 billion over the past 12 months.

In order to determine if the stock is worthy of your patience, you should know that Versum Materials, Inc. (NYSE:VSM) is now trading at 24.16X the earnings per share recorded over the past 12 months. This is a downtrend compared to the readings of the sector which is 43.93X while the industry average stands at 105.27X. The most popular way to value a stock is to look at its historic Price-to-Earnings (P/E) ratio with the help of its earnings report over the past 12 months. Versum Materials, Inc. was able to achieve an EPS of $2.14 during the last four quarters. The P/E ratio is widely known due to the fact that it is widely used, simple, effective, and, tautologically.

On Monday, August 05 of 2019, the 14-day Absolute ATR (Average True Range) for VSM moved by $0.18. Over the past seven days, the stock’s average daily volatility stood at 0.33%. A stock with a low volatility is usually a good one as it means that investors are very confident in the stock. Versum Materials, Inc.’s trading volume has recently moved to 1.51 million, which is compared with the average daily volume of 980.89 thousand shares.

The daily chart for VSM, points out that the company has recorded 38.36% gains over the past six months. However, it is still 106.43% higher than its most recent low trading price. The performance of the stock over the past five days shows that it is down -0.65% though it is -0.42% below its three-week moving average. It is worthy to know that price action is not always clear. There are times when a stock will undergo some negatives, trade erratically within some range or even act very unpredictable. When that happens, then making use of moving averages makes the pattern clearer for traders. Comparing to 50-day SMA, the price of the stock has surged by 0.04% while it is up 20.91% against the 200-day SMA. This is usually seen as the last support line for a stock, as a move downward could signal a bearish trend or market. The daily chart of VSM reveals that it has gained some grounds as it ended Monday with a 0.06% rise over the past 30 days.