Heads Equals Royalties, Tails Equals Cash: Total System Services, Inc. (TSS), Element Solutions Inc (ESI)

Total System Services, Inc. (NYSE:TSS) has its shares plummet by -3.05% or $4.34 from its all-time high of $142.3. The drop in the price of the shares saw it stand at $137.96 per share. TSS has been trading at a low of $75.58 over the past one year but it surged by 82.54% or $62.38 to reach the $137.96 mark. Following the massive rise in stock price, TSS received more attention from investors and analysts. On Monday, the stock dipped by -2.22%, which caused investors and analysts to worry about it. Following the plunge in price, the TSS beta stands at 0.86, implying that its volatility level has gone down by 0.14 back of the general market. A look at the stock’s 200-day moving average shows that it is 30.82% above while its 50-day moving average shows that it is currently 4.93% above. Compared to 2.07% average daily volatility of past month, the stock’s average volatility for this week has increased by 0.2 as the volatility level currently stands at 2.27%.

Over the past seven days, the stock has witnessed a price surge by 2.79%. This massive rise in stock price has caught the attention of both investors and market traders. The stock has performed excellently over the past 52 weeks, rising by 39.41% during that time frame and is now up by 69.71% since this point this year. TSS has surged by 6.61% over the past 30 days, with its equity price gaining% of its value over the past ninety days. These figures add up to see the stock record a growth of 46.88% over the past six months.

Market analysts from research firms still remain bullish about the short-term performance of TSS. Most of them are of the view that the stock would be able to reach $131.23 over the next 12 months. If that happens, then the stock would witness a -4.88% fall in its price and that would see the stock’s market cap hit an astonishing $23 Billion. Analysts view this stock as a bearish at the moment as its average rating is 2.1. According to Reuters, most of the 13 analysts covering the stock at the moment believe it is a Buy. 6 of them rated TSS as a Hold while 7 of them either rated it as a Buy or a Strong Buy. However, 0 of them advised investors to sell the stock if they have it or shouldn’t buy it if they don’t possess any.

The stock’s technical analysis reveals that its 14-day Relative Strength Index (RSI) is currently in a neutral position as it was able to attain 60.47 points. The trading volume now standing at 1350305 shares. The increase of 180305 shares in trading volume shows that traders and investors have shown more interest in the stock over the past few weeks. During that trading session, the average trading volume of TSS was 1170000 shares, which is more than 1.15 times higher than its usual trading volume.

Analysts have set a 1-year price target for this stock, with most of them expecting it to reach $12.63/share over the next 12 months. If that happens, then ESI would witness a 23.22% rise from its current price. The price of the stock has been moving between $9.97 and $10.32. Not all analysts believe it would hit that target though, as some of them expect it to trade lower, as low as $11 per share. In the same breath, one analyst believes that the stock is set to soar even higher than expected, as the price target was set at $14.

The stock is currently overbought as its Stochastic Oscillator (%D) is at 95.08%, which implies that a dip in price could be experienced soon. Its shares P/S ratio is above the 1.12 industry average and above the 0.86 by the wider market, as ESI’s P/S ratio currently stands at 1.39. The stock’s estimated price-earnings (P/E) multiple is 11.01 which is also above the 12-month price-earnings (P/E) which stands at 0. Element Solutions Inc has experienced a rise in its earnings, recording an increase rate of 27.2% in each quarter over the past five years.

The stock has an average rating of 2.4 which means that it has been rated as a Holdby most analysts. The stock is being covered by 7 analysts who gave a consensus recommendation of 2.4 which implies that it is currently in a neutral situation. Reuters looked into analysts covering Element Solutions Inc, and 4 of them believe that the stock is a Hold at the moment. 3 of the analysts rated it as a Buy or a Strong Buy while the remaining analysts (0) rated it as a sell at the moment.