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Vulcan Materials Company (VMC)

VMC stock forecast: buy or sell

Close on Sep 29th, 2020
$132.7 -0.01%
3 months performance
0.14%
Published: September 29th, 2020 - 6.10pm EDT

VMC stock outlook

  • Vulcan Materials Company (Holding Compan closed today at $132.70 after barely changing a -0.76% breaking a streak of 3 sessions in negative.
  • The stock is configuring an uptrend pattern since mid-May, when it bottomed at $88.07. This rally marked a 50.68% gain
  • Vulcan Materials Company produces and supplies construction materials primarily in the United States. The company operates through four segments: Aggregates, Asphalt, Concrete, and Calcium.

Important:
The comments expressed in this article are personal and not recommendations for you to buy or sell stocks. The author of this text does not have any knowledge of the particular scenarios 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 Thoughts are published for educative reasons only

VMC stock charts

Should I buy Vulcan Materials Company (Holding Compan 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 VMC stock a buy?

Currently, Vulcan Materials Company (Holding Compan stock matches one trading strategy:

Uptrend buy setup

Vulcan Materials Company (Holding Compan stock continues to trend higher since in mid-May and marked an amazing 50.68% gain. Price marked a pull back in this uptrend at $119.28 in early September, and since then it bounced off a 11.25%. Breaking out over $135.78 - it's last top - will be a good entry point if Vulcan Materials Company (Holding Compan resumes the uptrend. If you decide to enter this trade, the suggested stop loss is at $122.20

Buy setupBuy pointStop lossRisk
Uptrend buy setup$135.78$122.2010%

Should I sell Vulcan Materials Company (Holding Compan stock?

When is it time to sell Vulcan Materials Company (Holding Compan?. Trading strategies help us to avoid impulsive decisions based on our personal feelings or the noise surrounding the market. When selling, as well as buying, our setups are very simple to use and are only valid for selling stocks in your porfolio, not for selling short Vulcan Materials Company (Holding Compan stock

As a rule of thumb, you should never keep an operation that results in greater losses than those expected at the time of the buy. When to sell your stock must always be determined by the stop-loss (automatic or manual)

Is it time to sell Vulcan Materials Company (Holding Compan stock?

Currently, Vulcan Materials Company (Holding Compan stock doesn't match any of our preferred sell setups, so if you hold Vulcan Materials Company (Holding Compan stock and your operation is in profit probably is not time to sell now

Analysts' recommendations to buy or sell Vulcan Materials Company (Holding Compan 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, just one analyst rating was published for Vulcan Materials Company (Holding Compan

Vulcan Materials Company (Holding Compan ratings

Brokerage firmRating
Sep 1st, 2020
Argus Strong buyNeutral

Technical analysis

Vulcan Materials Company (Holding Compan stock started an uptrend in mid-May, and grew an amazing 50.68%. The price line shows higher peaks and higher troughs, and along the way provided some buy points for those who wanted to enter. Latest low was in early September, when price bounced at $119.28. Now, the price swings in a consolidation between its last top ($135.78) and its last bottom ($119.28)

SMAs overview

A favorite tool of many trading systems are the moving averages, that easily show market direction. A moving average is the average price of a stock over a set period of time. 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

VMC SMAs chart

Supports and resistances

Market investors use supports and resistances as a way to spot price points on a chart that may act as obstacles, preventing the price of an asset to move up or down. 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 falling until meeting another support level. On the other hand, resistance levels are where the price tends to find resistance as it moves up. Likewise, this means that the price is more likely to "rebound" at this level, and if it finally crosses this level, it will rally easily until it finds the next resistance

The current resistance levels are:

  • R1: $133.07 (0.28% above)
  • R2: $134.69 (1.5% above)
  • R3: $135.78 (2.32% above)
  • The current supports are:

  • S1: $131.97 (-0.55% below)
  • S2: $130.80 (-1.43% below)
  • S3: $130.66 (-1.54% below)
  • Bollinger bands

    The so-called Bollinger bands are a popular practice designed by John Bollinger. It comprises 3 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

    Since the price surpassed the upper band on September 17, the price has corrected downwards by 1.15%. The price is trading near to the upper Bollinger band, indicating some level of overbought in recent sessions. This is not a bearish indicator, as price can trade in these levels for many days and weeks

    VMC RSI chart

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that measures price movements to detect when the price of a share or financial asset is oversold or overbought. Like other oscillation indicators, the RSI moves between 0 and 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

    When the Relative Strength Indicator (RSI) fluctuates for so long below 70 and above 30, without indicating moments of overbought and oversold, the indicator gets of little use, and we are now in one of these cases.

    VMC RSI chart

    Earnings and financials

    Vulcan Materials Company (VMC) reported adjusted EPS for the fiscal second-quarter that surpassed Market expectations. Quarterly EPS was $1.60 per share instead of $1.38. This Q2 report means an earnings surprise of 15.94%. On the contrary, reported sales were $1.3 billion, consistent with the market estimates.

    In contract, the EPS for the same quarter last year was $1.48, so current EPS means a increase of 8.11%. Turnover merely changed on an annualized basis in the second-quarter, from $1.3B to $1.3B last quarter.

    VMC presents Q3 financial report on early next November. Wall Street analysts expect an EPS of $1.64, that is a 2.5% higher than previous quarter. If you hold or you are considering buying VMC shares, be vigilant as financial reporting day usually has a higher than usual volatility, and price can jump up or down with very low liquidity and not respecting your buy or stop-loss orders. Have a look company's website to confirm time and details on the earnings call and the earnings report.

    VMC revenues and profits chart