Invitation Homes Inc. (INVH)

INVH stock forecast: buy or sell

INVH stock outlook

  • Invitation Homes closed yesterday at $27.55 after only moving a 0.66%.
  • The stock is configuring an uptrend pattern since late March, when it bottomed at $15.55. This uptrend marked a 77.17% gain
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Important:
The comments given in this article are personal and not recommendations for you to buy or sell stocks. The author of this article does not have an understanding of the individual positions of the reader, his or her financial statements 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 expressed for learning purposes only

INVH stock chart overview

Should I buy Invitation Homes stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. 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 INVH stock a buy?

In the current situation of Invitation Homes there is not any eligible buy setup. This doesn't mean we expect a selloff for INVH in coming sessions, or that it may not climb higher. Simply, it doesn't match our recommended trading systems

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Should I sell Invitation Homes stock?

Do you know when is it time to sell Invitation Homes stock?. Trading strategies allow us to avoid impulsive decisions based on our emotions or the buzz surrounding the market. Our trading system selects very simple strategies to guide us on when is the best time to sell our shares. Be aware that these strategies are not intended for selling short Invitation Homes stock

As a rule of thumb, you should never keep a trading operation that yields greater losses than those expected at the time of the buy. The moment to sell shares should always be dictated by the stop-loss (automatic or manual)

Is it time to sell Invitation Homes stock?

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

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Analysts' recommendations to buy or sell Invitation Homes 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 Invitation Homes. General sentiment is bullish, with 2 out of 2 posting optimistic outlooks

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Invitation Homes ratings

Brokerage firmRating
Jun 16th, 2020
B. Riley Strong buy
Jun 18th, 2020
Janney Montgomery Scott Strong buy

Technical analysis

Since in late March, Invitation Homes has been printing an uptrend that by now marked an amazing 77.17%. The price shows higher peaks and troughs, and along the way gave very few entry points for those who wanted to enter. Latest pullback was in mid-April, when price bounced at $20.93. Now, the price moves in a consolidation between its last top ($29.62) and its last bottom ($20.93)

SMAs overview

Moving averages are simple tools for investors 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. Further about Moving Averages from sources like Wikipedia and Investopedia

Supports and resistances

Investors use supports and resistances as a way to find price points on a chart that tend to work as glass ceiling, containing the price of shares to move in certain direction. A support level is a level where the price tends to find support as it falls. Price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down this level, it will probably continue descending until approaching another support level. On the other hand, resistances are where the price may find opposition as it moves up. In the same way, the price is more likely to "bounce off" at this level, and if it finally breaks this level, the price will rally easily until it finds the next resistance

The current resistances are:

  • R1: $27.62 (0.25% above)
  • R2: $28.27 (2.61% above)
  • R3: $28.68 (4.1% above)
  • The current supports are:

  • S1: $26.90 (-2.36% below)
  • S2: $26.26 (-4.68% below)
  • S3: $24.52 (-11% below)
  • Bollinger bands

    So-called Bollinger bands are a widely known technical strategy introduced by John Bollinger. It is made up of three lines that are drawn 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

    The price is moving very close to the lower Bollinger band, signaling some level of oversold in recent sessions. This is not a buy signal, as price can trade in these levels for many days and weeks

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. Its objective is to plot the current and previous strength or weakness of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by stock traders

    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 yesterday was 51.26. Since RSI lost the overbought zone, Invitation Homes stock tanked a 5.65%

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    Earnings and financials

    Invitation Homes Inc. (INVH) released 1st-quarter earnings of $0.09 per share, significantly surpassing the Market consensus estimate of $0.05 per share. This quarterly report means an earnings surprise of 80%. On the contrary, the company said turnover for this quarter was $449.8 million aligned with the market estimates.

    This compares to earnings of $0.04 per share same quarter last year, so reported EPS is a gain of 125%. Turnover slightly moved on an annualized basis in the 1st-quarter, from $435.5M to $449.8M last quarter.

    INVH is releasing quarterly earnings report on early next August. Market analysts analysts forecast a per-share earnings of %s of $0.04, that is a 55.56% less than previous quarter. If you hold or you are planning to buy INVH stock, be vigilant as earnings reporting day usually has a very high volatility, and price can soar and sink with exceptionally low liquidity and not honouring your buy or stop-loss orders. You can probably find more details about the earnings conference call and the financial reports on the Investor Relations section of its website: http://www.InvitationHomes.com.

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