Alliance Data Systems Corporation (NYSE: ADS) Stock Could Be An Option To Consider

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Alliance Data Systems Corporation (NYSE:ADS) shares, rose in value on Wednesday, 11/24/21, with the stock price up by 0.73% to the previous day’s close as strong demand from buyers drove the stock to $75.94.

Actively observing the price movement in the last trading, the stock closed the session at $75.39, falling within a range of $74.42 and $77.08. The value of beta (5-year monthly) was 2.47 whereas the PE ratio was 4.31 over 12-month period. Referring to stock’s 52-week performance, its high was $128.16, and the low was $65.28. On the whole, ADS has fluctuated by -19.43% over the past month.

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With the market capitalization of Alliance Data Systems Corporation currently standing at about $3.84 billion, investors are eagerly awaiting this quarter’s results, scheduled for Jan 26, 2022 – Jan 31, 2022. The company’s Forward Dividend Ratio is 0.84, with its dividend yield at 1.11%. As a result, investors might want to see an improvement in the stock’s price before the company announces its earnings report. Analysts are projecting the company’s earnings per share (EPS) to be $3.03, which is expected to increase to $4.77 for fiscal year $16.65 and then to about $13 by fiscal year 2022. Data indicates that the EPS growth is expected to be 77.30% in 2022, while the next year’s EPS growth is forecast to be -21.90%.

Analysts have estimated the company’s revenue for the quarter at $1.08 billion, with a low estimate of $1 billion and a high estimate of $1.11 billion. Wall Street analysts also predicted that in 2022, the company’s y-o-y revenues would reach $4.31 billion, representing a decrease of -4.80% from the revenues reported in the last year’s results.

Revisions could be a useful indicator to get insight on short-term price movement; so for the company, there were no upward and no downward review(s) in last seven days. We see that ADS’s technical picture suggests that short-term indicators denote the stock is a 100% Sell on average. However, medium term indicators have put the stock in the category of 100% Sell while long term indicators on average have been pointing out that it is a 100% Sell.

20 analyst(s) have assigned their ratings of the stock’s forecast evaluation on a scale of 1.00-5.00 to indicate a strong buy to a strong sell recommendation. The stock is rated as a Hold by 8 analyst(s), 11 recommend it as a Buy and 1 called the ADS stock Overweight. In the meantime, 0 analyst(s) believe the stock as Underweight and 0 think it is a Sell. Thus, investors eager to increase their holdings of the company’s stock will have an opportunity to do so as the average rating for the stock is Overweight.

The stock’s technical analysis shows that the PEG ratio is about 0.83, with the price of ADS currently trading nearly -6.69% and -17.63% away from the simple moving averages for 20 and 50 days respectively. The Relative Strength Index (RSI, 14) currently indicates a reading of 35.93, while the 7-day volatility ratio is showing 3.31% which for the 30-day chart, stands at 3.83%. Furthermore, Alliance Data Systems Corporation (ADS)’s beta value is 2.33, and its average true range (ATR) is 3.60. The company’s stock has been forecasted to trade at an average price of $112.70 over the course of the next 52 weeks, with a low of $81.00 and a high of $145.00. Based on these price targets, the low is -6.66% off current price, whereas the price has to move -90.94% to reach the yearly target high. Additionally, analysts’ median price of $115.00 is likely to be welcomed by investors because it represents a decrease of -51.44% from the current levels.

A comparison of Alliance Data Systems Corporation (ADS) with its peers suggests the former has fared considerably weaker in the market. ADS showed an intraday change of 0.73% in last session, and over the past year, it grew by 1.17%%. In comparison, Visa Inc. (V) has moved higher at 2.40% on the day and was down -3.07% over the past 12 months. On the other hand, the price of American Express Company (AXP) has risen 0.44% on the day. The stock, however, is off 42.55% from where it was a year ago. Additionally, there is a loss of -0.28% for Capital One Financial Corporation (COF) in last trading while the stock has seen an overall depriciation of 71.23%% over the past year. The PE ratio stands at 4.31 for Alliance Data Systems Corporation, compared to 40.81 for Visa Inc., and 17.94 for American Express Company. Other than that, the overall performance of the S&P 500 during the last trading session shows that it gained 0.23%. Meanwhile, the Dow Jones Industrial Slipped by -0.03%.

Data on historical trading for Alliance Data Systems Corporation (NYSE:ADS) indicates that the trading volume over the past 3 months, they’ve averaged 772.20K. According to company’s latest data on outstanding shares, there are 49.80 million shares outstanding.

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Nearly 0.40% of Alliance Data Systems Corporation’s shares belong to company insiders and institutional investors own 95.60% of the company’s shares. The stock has risen by 2.48% since the beginning of the year, thereby showing the potential of a further growth. This could raise investors’ confidence to be optimistic about the ADS stock heading into the next quarter.