Chegg stock: buy or sell
Mar 2nd, 2021
Chegg stock brief
- Chegg stock skyrocketed 2.61% to close at $99.05 on the stock market on Monday, and broke a streak of 4 sessions in negative.
- Price is drawing a scaled uptrend since March 2020 with higher tops and higher bottoms. Up to date, shares made a 282.58% profit since the beginning of this rally
Should I buy Chegg 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 $CHGG stock a buy?
Currently, Chegg stock matches one trading strategy:
Uptrend buy setup
Chegg stock is in an uptrend since in March 2020 that so far marked an amazing 283.00% gain. Price marked a local bottom in this uptrend at $91.59 last Thursday, and since then it bounced off a 8.14%. Breaking out over $115.21 - it's last top - will be a good entry point if Chegg resumes the uptrend. If you decide to enter this trade, the suggested stop loss is at $103.69
|Buy setup||Buy point||Stop loss||Risk|
|Uptrend buy setup||$115.21||$103.69||10.00%|
Should I sell Chegg stock?
Knowing when to sell a stock is even more difficult than knowing when to buy it. Trading strategies prevent us from making rash decisions based on our personal moods or the noise surrounding the market. When selling, as well as buying, our strategies are very simple to follow and are only applicable for selling stocks in your porfolio, not for shorting $CHGG stock
A golden rule is that you must never mantain a trade that results in higher than expected losses upon purchase. When to sell your stock should always be dictated by the stop-loss (automatic or manual)
Is it time to sell Chegg stock?
Currently, Chegg stock doesn't match any of our preferred sell setups, so if you hold Chegg stock and your operation is in profit probably is not time to sell now
In the last month, 11 ratings were published for Chegg. General sentiment is bullish, with 9 out of 11 publishing positive forecasts
|Feb 9th, 2021|
|BMO Capital Markets|
|Craig Hallum|| |
|Jefferies Financial Group|| |
|Lake Street Capital||Neutral|
|Needham & Company LLC|| |
|Feb 10th, 2021|
Chegg stock analysis
Chegg shares started an uptrend in March 2020, and grew a gorgeous 282.58%. During this uptrend, the price offered some buy points on the breakouts. Latest pullback was last Thursday, when price bounced at $91.59. Currently, the price moves in a consolidation between its last top ($115.21) and its last bottom ($91.59)
Supports and resistances
The current resistance levels are:
The current supports are:
Since the price surpassed the upper band on February 16, the price corrected downwards by 14.03%
Relative strength index
The RSI dropped below the overbought level of 70 on February 17 after just crossing to the overbough zone for a single day (weak signal). The RSI reading on Monday was 48.81. Since that level was lost, Chegg shares dropped a 11.56%
Chegg stock price history
Chegg went public priced at an adjusted price1 of $11.00 on Nov 2013. Since then, CHGG stock surged by 800.45%, with an average of 114.35% per year. If you had invested thousand dollars in Chegg stock on Nov 2013, it would worth $9,004.55 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Chegg stock
How much a stock will be priced tomorrow or next week is quite unpredictable. However, many stock price forecasts are published every day by banks, financial institutions and independent analysts.
Along with buy or sell recommendations, brokerage institutions publish their price target based on the stock price action and the company fundamental data. Most of these estimates follow the release of new financial information by the company, and usually. If you are a small investor you should not invest based on these forecasts.
There are 11 price predictions issued for Chegg that average $116.55. Chegg closed at $99.05 on Monday, that is a 15.02% than the forecasted price.
|Brokerage firm||Price target|
|Feb 9th, 2021|
|Barrington Research||$110.00 → $120.00|
|BMO Capital Markets||$91.00 → $106.00|
|Craig Hallum||$105.00 → $125.00|
|Jefferies Financial Group||$115.00 → $120.00|
|KeyCorp||$120.00 → $124.00|
|Lake Street Capital||$85.00 → $98.00|
|Morgan Stanley||$105.00 → $115.00|
|Needham & Company LLC||$115.00 → $120.00|
|Northland Securities||$95.00 → $110.00|
|Piper Sandler||$110.00 → $124.00|
|Feb 10th, 2021|
|Citigroup||$100.00 → $120.00|
Earnings and financials
Chegg, Inc. ($CHGG) posted earnings of $0.55 per share in early February, uplifting the Market consensus estimate of $0.49 per share. This Q4 report means an earnings surprise of 12.24%. Company's sales resulted of $205.7 million versus $189.6 million forecasted by market consensus.In contrast, the EPS for the same quarter last year was $0.35, so reported EPS means a gain of 57.14%. Turnover skyrocketed a 63.92% on an annualized basis in the , from $1.3B to $2.1B last quarter.
Chegg ($CHGG) will host the quarterly earnings call next May. Wall Street predicts of $0.30, compared to previous quarter that was $0.55.
Please read:The comments published in this post are personal and not recommendations for you to buy or sell stocks. The author of this report does not have an understanding of the individual positions of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are published for learning motives only
|Monday, March 1st, 2021|
|Day range||$96.91 - $99.44|
|Average true range||$8.26|
|50d mov avg||$97.17|
|100d mov avg||$87.19|
|200d mov avg||$78.52|
|Earnings date||May 3rd, 2021|