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STORE Capital Corporation (STOR)

STORE Capital stock forecast: buy or sell

Close on Oct 23rd, 2020
$28.12 +1.55%
3 months performance
22.70%
Published: October 24th, 2020 - 1.47am EDT

STORE Capital stock outlook

  • Counting yesterday, it's been 4 consecutive sessions in positive for STORE Capital. Price closed yesterday at $28.12 after climbing a 1.55%.

Important:
The thoughts contained in this post are personal and not recommendations for you to buy or sell shares. The author of this report does not know the particular situations of the reader, his or her finances 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 Viewpoints are expressed for education motives only

STORE Capital stock charts

Should I buy STORE Capital 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 $STOR stock a buy?

Currently, STORE Capital 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 $STOR in coming sessions, or that it may not climb higher. Simply, it doesn't match our recommended trading systems

Should I sell STORE Capital stock?

Knowing when to sell a stock is even harder than knowing when to buy it. Similarly to when we have to buy shares, determining when is appropiate time to sell is not a whimsical decision, and we must follow our own trading style. When selling, as well as buying, our setups are very simple to use but are only applicable for selling shares you already own, not for selling short $STOR stock

A guiding principle is that you should not keep a trade that produces higher than expected losses by the time of purchase. When to sell your stock always has to be ruled by the stop-loss (automatic or manual)

Is it time to sell STORE Capital stock?

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

Analysts' recommendations to buy or sell STORE Capital 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 rating was published for STORE Capital

STORE Capital ratings

Brokerage firmRating
Sep 29th, 2020
Mizuho Neutral

Technical analysis

SMAs overview

Moving averages are simple tools for traders to detect market momentum. 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

STOR SMAs chart

Supports and resistances

Traders use support and resistance levels to find price points on a chart that may behave as barriers, preventing the price of an asset to move in certain direction. A support level is a level where the price tends to stop 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 is likely to continue descending until approaching another support level. On the contrary, resistances are where the price tends to find a curb as it rises. In the same way, the price is more likely to "rebound" at this level, and if it finally breaks this level, the price will rally easily until it meets the next resistance

The current resistances are:

  • R1: $28.21 (0.32% above)
  • R2: $29.09 (3.45% above)
  • R3: $29.24 (3.98% above)
  • The current supports are:

  • S1: $27.46 (-2.35% below)
  • S2: $26.50 (-5.76% below)
  • S3: $26.47 (-5.87% below)
  • Bollinger bands

    So-called Bollinger bands are a widespread studio designed by John Bollinger. It is made up of 3 bands 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 price is trading near to the upper Bollinger band, poiting some level of overbought in recent sessions. This is not a bearish indicator, as price can move in these levels for many days and weeks

    STOR RSI chart

    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 weakness or strength of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI moves in a range from 0% to 100%. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by investors

    The RSI dropped below the overbought level of 70 in mid-September after just crossing to the overbough zone for 1 day (weak signal). The RSI reading yesterday was 56.48. Since RSI lost the overbought zone, STORE Capital price dropped a 3.43%

    STOR RSI chart

    Earnings and financials

    In early August, STORE Capital ($STOR) had the quarterly investors event and posted the fiscal 2nd-quarter report. The company posted earnings of $0.26 per share, lowering the analysts consensus estimate of $0.30 per share.

    This compares to earnings of $0.20 per share same quarter last year, so reported EPS is an improvement of 30%. Looking at sales, figures only moved compared to $167.6M same quarter 12 months ago.

    STORE Capital ($STOR) is hosting the quarterly earnings call on Thursday next week. Wall Street expects an EPS of $0.21, compared to previous quarter that was $0.26.

    STOR revenues and profits chart