It’s important for all investors and traders to look for the condition of OneMain Holdings (OMF) stock before betting on it. While in cognition to this objective, the most common trait of stock trading has remained the Overbought and Oversold.
But how the OneMain Holdings (OMF) stock is overbought? Keep joggling around for the answer that we tried to give with the help of a comprehensive review. When ramping up the concepts briefly we can say that the stock is oversold when its price dips down quickly to the extent that it might not be assumed as real value of the stock or the stock is now under the intrinsic value and might see a correction. While indeed the term overbought tells about itself pretty well as it’s an opposite coincidence to oversold condition.
Now as you better know what overbought and oversold stock means, it’s time to know how to conceive a stock’s condition of overbought and oversold. Relative Strength Index (RSI) is one of the main metrics to make this work simple for you. While investors look for the fundamental metrics of the company like earnings, profitability and debt when the stock moves too low or high.
OneMain Holdings (OMF) stock is overbought in technical terms as it has RSI of 70.86 and moving with the weekly performance of 9.53%. We will be looking at RSI metrics further in the section of technical metrics after performance and volatility lookup.
Performance Lookup of OneMain Holdings:
A quick look on performance; OneMain Holdings (OMF) stock travelled 1.96% on FRIDAY trading session to $47.91 a share and drifted with up movement of 9.53% over the week. For the last one-month time period it boosted 14.84%. While for the three months’ time period it advanced 16.68%, for six months it appreciated 36.88%, and on last 12-months it posted a change of 49.90%. Checking overall performance so far this year, the stock move is counted with change of 13.67%. The stock is standing at 69.39% from its one-year low and -1.90% away from one year high.
OneMain Holdings Volatility Lookup:
It’s important to check the Volatility levels and sensitivity of OneMain Holdings (OMF). So here we can see that in last trading session 1197534 shares have been traded as compared to an average of 631.65K shares. Trading volume and an average volume indicate that these days OneMain Holdings is being actively traded. While when looking for the main indicator Volatility we have seen it has been 3.84% for the week and 2.99% for the month. Beta Volatility has remained 2.21, Beta is an important measure to understand how much stock is risky to bet on, if it’s more than 1 than the stock is risky and if it’s zero the stock is less risky as compared to the market. ATR which is also used to measure volatility of a stock is seen at 1.38.
Technical Metrics of OneMain Holdings (OMF):
Relative Strength Index RSI is one of the most widely used indicator to measure the trending position of a stock which also helps to measure a stock’s oversold and overbought condition. In case you don’t know, RSI value of a stock lies between 0 and 100. Usually when RSI of a stock goes above 70 then (mostly) stock is considered overbought and it’s oversold when it goes below 30. The value between 30 and 70 is considered normal. When looking at the OneMain Holdings (OMF), RSI of 70.86, gives us technical hint that the stock is overbought.
However, sometimes RSI can come short as RSI mostly rely on stock’s movement of just 14 days however when to check the long trend we require another way as well. It’s good to look for an overbought condition in longer trend as well when the stock has short upward momentum. Many traders use simple moving averages SMA that works nice to show the average of a total price change and a less steep trending line. OMF is trading 10.60% from the Simple Moving Average of last 20 days, 11.51% from SMA of 50 days and 28.58% from the same metric for 200 days.
OneMain Holdings Fundamental Check:
This company has seen with Profit Margin of 16.50%. Gross Margin was seen at 79.60% and Operating profit has been 20.90%. Return on Asset stood 3.60%, Return on equity remained 19.10% and Return on Investment was seen at 2.40%. These profitability ratios are crucial to understand the fundamental side of the stock. Better to research definitions in detail.
Price to Earnings Ratio P/E ratio of 8.57 is also an important metric to look whether the stock is undervalued or overvalued. It is basically a ratio between the company’s earnings per share to the market price of a stock. Usually if a company’s P/E ratio is higher than the industry average then stock is considered overvalued and if it’s lower than stock is undervalued. The company’s EPS which is earnings per share for the stock stood at $5.59 and the stock value of $47.91. For the next year Forward P/E of stock is 7.17 while P/Sales is 1.41 and P/book is 1.59.
What Analysts has to Say About Stock? Analysts Mean Recommendation for the stock is 1.7. Where 1 is Strong Buy and 5 is Strong Sell. Looking for analysts’ opinion is also an important thing to evaluate the stock. Analysts expected the stock’s target price of $51.44 in one year period.
By looking at every important aspect of the stock trading in last session we can observe that OneMain Holdings (OMF) stock is Overbought as its RSI value (70.86) has crossed the mark of 70. OMF is moving with change 1.96% along price worth of $47.91.