The price of GSX Techedu Inc. (NYSE:GSX) stock ended February 20, 2020 trading at $42.76 which saw downtrend of 95.61% since the beginning of 2020. For most investors, the -4.94% rally in the share price 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.
In order to determine if the stock is worthy of your patience, you should know that GSX Techedu Inc. (NYSE:GSX) is now trading at 1527.14X the earnings per share recorded over the past 12 months. This is an uptrend compared to the readings of the sector which is 41.17X while the industry average stands at 44.77X. 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. GSX Techedu Inc. was able to achieve an EPS of $0.03 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 Thursday, February 20 of 2020, the 14-day Absolute ATR (Average True Range) for GSX moved by $3.53. Over the past seven days, the stock’s average daily volatility stood at 9.77%. A stock with a low volatility is usually a good one as it means that investors are very confident in the stock. GSX Techedu Inc.’s trading volume has recently moved to 3.68 million, which is compared with the average daily volume of 2.66 million shares.
The daily chart for GSX, points out that the company has recorded 191.88% gains over the past six months. However, it is still 401.29% higher than its most recent low trading price. The performance of the stock over the past five days shows that it is up 18.09% though it is 17.08% above 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 48.49% while it is up 141.51% 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 GSX reveals that it has gained some grounds as it ended Thursday with a 23.55% rise over the past 30 days.