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Extra Space Storage Inc. (EXR)

EXR stock forecast: buy or sell

Close on Oct 23rd, 2020
$118.66 +1.02%
3 months performance
24.90%
Published: October 24th, 2020 - 4.51pm EDT

EXR stock outlook

  • Extra Space Storage stock moved up 1.02% to close at $118.66 on the stock market today, after 4 consecutive sessions in green.
  • The price is currently over the upper Bollinger band, which usually indicates a near-term correction
  • Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500.

Please read:
The thoughts given in this article are personal and not recommendations for you to buy or sell shares. The author of this document does not have any knowledge of the specific circumstances of the reader, his or her 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 Comments are expressed for learning purposes only

EXR stock charts

Should I buy Extra Space Storage 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 $EXR stock a buy?

Currently, Extra Space Storage stock matches 2 trading strategies:

Uptrend buy setup

Extra Space Storage stock is in an uptrend since last March that so far marked an amazing 66% gain. Price marked a pull back in this uptrend at $102.74 in late September, and since then it bounced up a 15.5%. Price just broke out above the entry point at $113.19, but it can be traded. If price climbs beyond $118.85, don't chase the price and wait for the next opportunity. If you decide to enter this trade, the suggested stop loss is at $101.87

Buy setupBuy pointStop lossRisk
Uptrend buy setup$113.19$101.8710%

ATH buy setup

All-time Highs is always an excellent buy point for those who like to buy high and sell higher. The good point of buying at ATHs is that shares price doesn't struggle with upper resistances, and usually it scales rapidly. However, you must always be aware of a possible bulls trap that may trigger your buy order and then falls sharply. That's why a stop loss is so important. Price is now at 0.4% of all-time highs and it can breakout at any time, so if you want to trade this setup it's recommended to setup your order at $119.14. Set your stop-loss at $107.23

Buy setupBuy pointStop lossRisk
ATH buy setup$119.14$107.2310%

Should I sell Extra Space Storage stock?

Knowing when to sell a stock is even harder than knowing when to buy it. Much like when we have to buy shares, determining when is appropiate to sell is not a whimsical decision, and we must use our own trading strategy. Our trading system selects very simple setups to guide us on when is a good time to sell our shares. Be aware that these setups are not intended for selling short $EXR stock

As a golden rule, you must never hold an investment that results in losses greater than those expected at the time of purchase. The timing to sell your stock must always be determined by the stop-loss (automatic or manual)

Is it time to sell Extra Space Storage stock?

Currently, Extra Space Storage stock doesn't match any of our preferred sell setups, so if you own Extra Space Storage shares and your operation is in profit probably is not time to sell now

Analysts' recommendations to buy or sell Extra Space Storage 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, 2 analyst ratings were published for Extra Space Storage

Extra Space Storage ratings

Brokerage firmRating
Oct 6th, 2020
Raymond James
Oct 13th, 2020
Jefferies Financial Group NeutralStrong buy

Technical analysis

Since last March, Extra Space Storage has been drawing an uptrend that by now marked an amazing 66.14%. The price shows higher highs and higher lows, and along the way gave some buy points for those who wanted to invest. Latest low was in late September, when price bounced at $102.74. On October 14, Extra Space Storage broke out above its last top ($113.19) giving a good buying opportunity

SMAs overview

Moving averages are tools for traders to measure market direction. 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

EXR SMAs chart

Supports and resistances

Traders use support and resistance levels as a way to spot price points in the stock price action that tend to act as glass ceiling, preventing the price of an asset to move up or down. Supports are levels where the price may stop as it falls. Price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down this level, it will probably continue falling until meeting another support level. In contrast, a resistance level is where the price tends to find opposition as it moves up. In the same manner, the price is more liable to "rebound" at this level, and if it finally crosses this level, it will rise more easily until it approaches the next resistance

The current resistances are:

  • R1: $119.14 (0.4% above)
  • The current supports are:

  • S1: $114.29 (-3.68% below)
  • S2: $113.19 (-4.61% below)
  • S3: $112.71 (-5.01% below)
  • Bollinger bands

    This is an indicator that was introduced in the 1980s by John Bollinger. It consists 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 readings both above or below the Bollinger Bands tell us that the price has has trended strongly to extreme upward or downward values. In this case, the price is beyond the upper band, and that should mean a near-term adjustment (at least) until it is under the band

    EXR RSI chart

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. It is intended to plot the current and historical strength or weakness of a stock or market based on the closing prices of a recent trading period. 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, invented by J. Welles Wilder in 1978

    Relative Strength Indicator crossed over the overbought line yesterday, with a value of 72.61. Contrary to what many investors may think, the fact that the RSI value is above 70 does not in any way imply a sell signal, as shares can climb during several weeks being in the overvalued zone

    EXR RSI chart

    Earnings and financials

    In early August, Extra Space Storage ($EXR) hosted the quarterly earnings call and released the FQ2 report. EXR topped market estimates and presented a per-share earnings of $0.80, that is a 9.59% improvement versus the predictions of $0.73.

    Compared to the same quarter one year ago, EPS was $0.77, so current EPS is a improvement of 3.9%.

    EXR ($EXR) will host the quarterly earnings call on Wednesday next week. Wall Street forecasts a per-share earnings of $0.76, compared to previous quarter that was $0.80.

    EXR revenues and profits chart