Equitable Holdings, Inc. (EQH)

AXA Equitable stock forecast: buy or sell

AXA Equitable stock outlook

  • AXA Equitable closed on Friday at $21.45 after skyrocketing a 4.08%.
  • The price is currently higher than the upper Bollinger band, which usually indicates a near-term correction
  • On Tuesday, AXA Equitable released its Q2 earnings report
  • The stock is configuring an uptrend pattern since late March, when it bottomed at $9.80. This uptrend marked a 118.88% gain
  • Morgan Stanley posted a buy rating for AXA Equitable on Wednesday, forecasting $24.00
  • Equitable Holdings, Inc. operates as a diversified financial services company worldwide.
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Important:
The viewpoints contained in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this report does not have any knowledge of the individual circumstances 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 provided for informational reasons only

AXA Equitable stock chart overview

Should I buy AXA Equitable 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 EQH stock a buy?

In the current situation of AXA Equitable there is just one buy setup eligible:

Uptrend buy setup

AXA Equitable stock is in an uptrend since in late March that so far has marked an amazing 119% gain. Price marked a local bottom in this uptrend at $18.06 in early July, and since then it bounced off a 18.77%. Breaking out above $24.19 - it's last top - will be a good entry point if AXA Equitable resumes the uptrend. If you decide to enter this trade, the suggested stop loss is at $21.77

Buy setupBuy pointStop lossRisk
Uptrend buy setup$24.19$21.7710%
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Should I sell AXA Equitable stock?

"To sell or not to sell", if you are holding AXA Equitable stock?. Just as when we have to buy shares, choosing when is appropiate to sell is not a random decision, and we must adhere our own trading strategy. We like very simple strategies to guide us on when is a good moment to sell a stock. Be aware that these strategies should not be used for selling short AXA Equitable stock

A golden rule is that you should not hold an investment that results in higher than expected losses upon purchase. The moment to sell shares must always be determined by the stop-loss (automatic or manual)

Is it time to sell AXA Equitable stock?

In the current situation of AXA Equitable there is not any eligible sell setup, so AXA Equitable stock holders with operations in profit can keep their positions

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Analysts' recommendations to buy or sell AXA Equitable 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 30 days, just one brokerage rating was published for AXA Equitable

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AXA Equitable ratings

Brokerage firmRating
Aug 5th, 2020
Morgan Stanley Buy

Technical analysis

AXA Equitable shares started an uptrend in late March, and grew an amazing 118.88%. The chart shows higher peaks and higher troughs, and along the way gave some buying opportunities for those who wanted to invest. Latest pullback was in early July, when price bounced at $18.06. Currently, it moves in a consolidation between its last top ($24.19) and its last bottom ($18.06)

SMAs overview

Moving averages are indicators for traders to measure market momentum. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Market investors use supports and resistances to find price points on a chart that tend to act as obstacles, preventing the price of an asset to move up or down. A support level is a level where the price may stop as it falls. This means that the price is more likely to "rebound" this level rather than break through it. However, if the price breaks down this level, it is likely to continue declining until approaching another support level. On the contrary, resistance levels are where the price may find resistance as it rises. In the same manner, this means that the price is more likely to "bounce off" at this level, and if it finally ruptures this level, it will rally easily until it approaches the next resistance

The current resistance levels are:

  • R1: $22.25 (3.73% above)
  • R2: $22.33 (4.1% above)
  • R3: $23.51 (9.6% above)
  • The current supports are:

  • S1: $19.71 (-8.11% below)
  • S2: $19.14 (-10.77% below)
  • S3: $18.89 (-11.93% below)
  • Bollinger bands

    This is an indicator that was created in the 1980s by John Bollinger. It is composed of three bands that are superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Price levels above or below the Bollinger Bands tell us that the price has followed a strong trend that has led to extreme highs or lows. In this case, the price is over the upper band, meaning a short-term correction (at least) until it is below the band

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that gauges price action to identify when the share or financial asset is oversold or overbought. Like other oscillation indicators, the RSI fluctuates in a range between 0% and 100%. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in the late 1970s

    The RSI dropped below the overbought level of 70 in early June after just crossing to the overbough zone for just one day (weak signal). The RSI reading on Friday was 61.33. AXA Equitable shares collapsed a 6.94% since RSI lost the overbought zone

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    Earnings and financials

    Equitable Holdings, Inc. (EQH) reported adjusted EPS for the fiscal 2nd-quarter that enhanced Market expectations. Quarterly EPS was $1.00 per share from an estimated $0.89. This quarterly report represents an earnings surprise of 12.36%. Forecasted revenue for this quarter was $3.2 billion but AXA Equitable poorly missed by 179.31%, reporting $-25,300,000,000.00.

    By comparison, the EPS for the same quarter last year was $1.14, so reported EPS means a loss of -12.28%. Looking at revenue, figures dropped a -232.25% compared to $1.9B same quarter a year ago.

    AXA Equitable is hosting the quarterly earnings call next November. Forecasted per-share earnings of %s for this quarter is $1.10. Earnings reporting day has a more than usual risk for stock traders as the information published can soar and sink the price with exceptionally low volume and not respecting your buy or stop-loss orders. It's always good to review company's website to confirm time and details about the earnings call and the earnings report.

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