Roper Technologies, Inc. (ROP)

ROP stock forecast: buy or sell

ROP stock outlook

  • Roper Technologies stock only changed -0.62% to close at $394.93 on the stock market today.
  • From the chart point view, price is drawing a scaled uptrend since mid-March with higher tops and higher bottoms. This uptrend marked a 65.04% gain
  • Roper Technologies, Inc. designs and develops software, and engineered products and solutions worldwide.
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Disclaimer:
The thoughts contained in this article are personal and not recommendations for you to buy or sell stocks. The author of this text does not have an understanding of the specific situations 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 published for education purposes only

ROP stock chart overview

Should I buy Roper Technologies 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 ROP stock a buy?

In the current situation of Roper Technologies there is just one buy setup eligible:

ATH buy setup

One of the most recommended trading strategies is to buy on All-time Highs (ATH) breakouts. The good point of buying at all-time highs is that shares price doesn't struggle with upper resistances, and usually it rises fast. However, you must always be aware of a possible bulls trap that may trigger your buy order and then drops sharply. That's why a stop loss is always important. Price is now at 3.78% 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 $409.87. The stop loss would be placed at $368.88

Buy setupBuy pointStop lossRisk
ATH buy setup$409.87$368.8810%
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Should I sell Roper Technologies stock?

When you own stock shares with some profit, it's really hard to decide the good moment to sell and get your benefits. Just as when we have to buy shares, choosing when is the best time to sell is not a haphazard decision, and we must follow our own trading strategy. We like very simple strategies to guide us on when is a good moment to sell our shares. Be aware that these strategies should not be used for selling short ROP stock

A guiding principle is that you should never hold a trading operation that generates greater losses than those expected at the time of the buy. The moment to sell your stock always has to be determined by the stop-loss (automatic or manual)

Is it time to sell Roper Technologies stock?

In the current situation of Roper Technologies there is not any eligible sell setup, so Roper Technologies stock holders with operations in green can keep their positions

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Analysts' recommendations to buy or sell Roper Technologies 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 Roper Technologies

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Roper Technologies ratings

Brokerage firmRating
Jun 11th, 2020
Oppenheimer
Jun 12th, 2020
Oppenheimer

Technical analysis

Since in mid-March, Roper Technologies has been printing an uptrend that so far marked an amazing 65.04%. The price line shows higher peaks and troughs, and along the way provided very few buy points for those who wanted to enter. Latest pullback was in late April, when price bounced at $304.15. Like in all uptrends, price needs to take breath and currently price is moving in a range between $409.87 and $304.15

SMAs overview

Moving averages are tools for traders to measure stock 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. Further about Moving Averages from sources like Wikipedia and Investopedia

Supports and resistances

Market investors use support and resistance levels as a way to find price points on a chart that tend to act as obstacles, containing the price of a stock to move in certain direction. A support level is a level where the price tends to stop as it falls. This means that the price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down the support, it will probably continue descending until finding another support level. In contrast, resistances are where the price may find a curb as it moves up. In the same way, this means that the price is more likely to "bounce off" at this level, and if it finally breaks this level, the price will rise easily until it hits the next resistance

The current resistance levels are:

  • R1: $409.87 (3.78% above)
  • The current supports are:

  • S1: $393.84 (-0.28% below)
  • S2: $383.30 (-2.94% below)
  • S3: $375.09 (-5.02% below)
  • Bollinger bands

    This is an indicator that was introduced in the 1980s by John Bollinger. It consists of three lines that are outlined 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 distance between the upper and lower bands is 4.97%, and this means that volatility is low. Reduced volatility is often the antecedent to a sharp movement (up or down), so we must be alert and manage our buy or sell orders appropiately

    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 past strength or weakness of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI ranges from 0% to 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 mid-June after just crossing to the overbough zone for a single day (weak signal). The RSI value today was 55.67. Roper Technologies price went down a 1.66% since that level was lost

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    Earnings and financials

    First-quarter financial event was hosted by ROP in late April after releasing the financial report. ROP topped analysts estimates and reported earnings of %s per-share of $3.05, that is a 4.81% increase versus the previous estimates of $2.91. Reported sales were $1.4 billion versus estimates of $1.3 billion.

    By comparison, the EPS for the same quarter last year was $3.30, so posted EPS means a drop of -7.58%. Sales only moved on an annualized basis in the 1st-quarter, from $1.3B to $1.4B last quarter.

    ROP is releasing financial report on Thursday next week. Wall Street forecasts a per-share earnings of %s of $2.67, compared to previous quarter that made $3.05. Earnings reporting day has a more than usual risk for investors as the data disclosed can jump up or down the price with exceptionally low liquidity 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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