Simulations Plus Inc. (SLP)

SLP stock forecast: buy or sell

SLP stock outlook

  • Simulations Plus closed yesterday at $62.46 (-1.75%) prior to reporting earnings at
  • On Thursday, Simulations Plus presented its Q2 financial report
  • Simulations Plus marked a new all-time high yesterday, setting the new record at $68.40.
  • Simulations Plus marked a new all-time high yesterday, setting the new record at $68.40.
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Important:
The opinions written in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this report does not have an understanding of the particular scenarios 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 provided for educative reasons only

SLP stock chart overview

Should I buy Simulations Plus 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 SLP stock a buy?

Currently, Simulations Plus stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for SLP in the next few days, or that it may not climb higher. Simply, it doesn't match our recommended trading systems

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Should I sell Simulations Plus stock?

When you own stock shares with some profit, it's really difficult to decide the good moment to sell and get your benefits. Much like when we have to buy shares, deciding when is appropiate time to sell is not a whimsy decision, and we must follow our own trading style. When selling, as well as buying, our strategies are very simple to follow but are only valid for selling shares you already own, not for selling short SLP stock

A guiding principle is that you should never hold an operation that produces losses greater than those expected upon the buy. When to sell your stock must always be dictated by the stop-loss (automatic or manual)

Is it time to sell Simulations Plus stock?

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

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Analysts' recommendations to buy or sell Simulations Plus 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

We don't have any rating published in the previous month for Simulations Plus

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Technical analysis

Simulations Plus shares started an uptrend in mid-March, and grew a gorgeous 140.6%. Rising highs and lows can be seen easily on a chart and how price action provided very few buy points on the breakouts. Latest low was in early May, when price bounced at $36.15. Simulations Plus broke out above $43.63 (its last top) in late May. That breakout was a good entry point that resulted in a 43.16% profit

SLP at new Highs

Yesterday, Simulations Plus hit new all-time highs (ATH) again at $68.40. Stock rallied fast in the last 2 weeks, hiting new all-time highs 7 times

SMAs overview

A favorite tool of many technical analysts are the moving averages, that easily show market direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Market investors use support and resistance levels as a way to find price points on a chart that may act as obstacles, containing 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. However, if the price breaks down this level, it is likely to continue falling until approaching another support level. On the contrary, resistances are where the price tends to find resistance as it rises. In the same manner, the price is more likely to "rebound" at this level, and if it finally ruptures this level, it will rally more easily until it approaches the next resistance

Price is at all-time highs and there are not upper resistance levels.

The current support levels are:

  • S1: $43.63 (-30.15% below)
  • S2: $41.74 (-33.17% below)
  • S3: $40.16 (-35.7% below)
  • Bollinger bands

    This is an indicator that was designed in the 1980s by John Bollinger. It is composed of 3 bands 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

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. Its objective is to chart the current and past 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 intended to indicate values in the range of 0-100. 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

    After crossing up the line of 70 yesterday, relative strength (RSI) sliced back below with a reading of 69.71. This is a signal of weakness for the Simulations Plus shares and it should raise our awarness of weakness in the stock price

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    Earnings and financials

    Simulations Plus Inc. (SLP) posted EPS for the fiscal second-quarter that strongly improved Wall St. expectations. Quarterly EPS was $0.20 per share vs. $0.10. This Q2 report represents an earnings surprise of 100%. Forecasted turnover was $11.2 million but Simulations Plus slightly improved by 9.72%, posting $12.3 million.

    This compares to earnings of $0.16 per share a year ago, so current EPS means an improvement of 25%. Looking at revenues, figures exploded a 23.74% compared to $9.9M year over year. Simulations Plus reported three YoY quarterly results in green, improving revenue by 96.3% from $6.3M on 2017-Q3.

    SLP will host the earnings call. Earnings reporting day has a more than usual risk for stock investors as the results posted can gap up or down the price with exceptionally low liquidity and not honouring 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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