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Ampco-Pittsburgh Corporation (AP)

AP stock forecast: buy or sell

Close on Sep 25th, 2020
$3.54 0.05%
3 months performance
0.11%
Published: September 28th, 2020 - 4.31am EDT

AP stock outlook

  • Ampco-Pittsburgh closed last Friday at $3.54 (4.73%) prior to reporting earnings at
  • Ampco-Pittsburgh gained a 13.1% in 4 consecutive sessions in green
  • The stock is configuring an uptrend pattern since early August, when it bottomed at $2.70. Up to date, shares marked a 31.11% gain since the beginning of this rally
  • Ampco-Pittsburgh Corporation, together with its subsidiaries, manufactures and sells custom designed engineering products to commercial and industrial users in the United States and internationally.

Please read:
The thoughts expressed in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this document does not have any knowledge of the particular conditions of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are expressed for educative reasons only

AP stock charts

Should I buy Ampco-Pittsburgh stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is AP stock a buy?

In the current situation of Ampco-Pittsburgh there is just one buy setup eligible:

Uptrend buy setup

Ampco-Pittsburgh stock is in an uptrend since in early August that so far has marked a gorgeous 31% gain. Price marked a local bottom in this uptrend at $2.95 last Tuesday, and since then it bounced off a 20%. Now, it's just 21.75% away from breaking out above its last top and resume the uptrend. The new entry point is therefore at $4.31. If you decide to enter this trade, the suggested stop loss is at $3.88

Buy setupBuy pointStop lossRisk
Uptrend buy setup$4.31$3.8810%

Should I sell Ampco-Pittsburgh stock?

"To sell or not to sell", if you are holding Ampco-Pittsburgh shares?. Trading strategies prevent us from making rash decisions based on our emotions or the buzz that surrounds the market. When selling, as well as buying, our setups are very simple to use but are only applicable for selling shares you already own, not for shorting Ampco-Pittsburgh stock

As a golden rule, you should never hold an investment that produces greater losses than those expected at the time of the buy. When to sell shares should always be dictated by the stop-loss (automatic or manual)

Is it time to sell Ampco-Pittsburgh stock?

Currently, Ampco-Pittsburgh stock doesn't match any of our preferred sell setups, so if you hold Ampco-Pittsburgh stock and your operation is in profit probably is not time to sell now

Analysts' recommendations to buy or sell Ampco-Pittsburgh stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month we couldn't find any rating for Ampco-Pittsburgh

Technical analysis

Since in early August, Ampco-Pittsburgh has been printing an uptrend that by now marked a gorgeous 31.11%. Rising tops and bottoms can be seen easily on a chart and how price action gave very few buy points on the breakouts. Latest low was last Tuesday, when price bounced at $2.95. Like in all uptrends, price needs to take breath and now price is consolidating the gains in a range between $4.31 and $2.95

SMAs overview

A favorite tool of many trading systems are the moving averages, that easily show market direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

AP SMAs chart

Supports and resistances

Market investors use supports and resistances to find price points in the stock price action that tend to act as barriers, preventing the price of an asset to move in certain direction. Supports are levels where the price may stop as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down this level, it will probably continue descending until meeting another support level. On the other side, a resistance level is where the price tends to find a curb as it rises. Again, this means that the price is more liable to "bounce off" at this level, and if it finally ruptures this level, the price will rally more easily until it approaches the next resistance

The current resistance levels are:

  • R1: $3.55 (0.28% above)
  • R2: $3.59 (1.41% above)
  • R3: $3.63 (2.54% above)
  • The current supports are:

  • S1: $3.44 (-2.82% below)
  • S2: $3.42 (-3.39% below)
  • S3: $3.34 (-5.65% below)
  • Bollinger bands

    This is an indicator that was introduced in the 1980s by John Bollinger. The Bollinger Bands are bands that move around a moving average and vary the distance from the bottom to the top depending on market volatility. They are usually drawn by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Since the price broke down the lower band on September 21, the price has bounced up by 19.59%

    AP RSI chart

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that track price movements to spot when the price of a share or financial asset is overbought or oversold. Like other oscillation indicators, the RSI moves in a range between 0% and 100%. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by investors

    The RSI dropped below the overbought level of 70 in mid-August after just crossing to the overbough zone for just one day (weak signal). The RSI reading last Friday was 57.38. Ampco-Pittsburgh price dropped a 16.71% since that level was lost

    AP RSI chart

    Earnings and financials

    Ampco-Pittsburgh Corporation (AP) reported adjusted EPS for the fiscal 2nd-quarter that significantly improved analysts' expectations. Quarterly EPS was $0.05 per share instead of $-0.48. This Q2 report represents an earnings surprise of 110.42%. Predicted revenue for Q2 was $106.1 million but Ampco-Pittsburgh far failed to match by 29.52%, reporting $74.8 million.

    In comparing, the EPS for the same quarter last year was $0.00, so reported EPS is a gain of -. Revenue dropped a -27.06% on an annualized basis in the second-quarter, from $102.5M to $74.8M last quarter.

    AP will host the earnings call. Earnings reporting day has an additional risk for investors as the data disclosed can gap up or down the stock price with very low liquidity and not respecting your buy/stop-loss orders. You can obtain more details about the earnings call and the earnings reports on the Investor Relations section of its website: http://ampcopgh.com.

    AP revenues and profits chart