Advertisement
Singapore markets closed
  • Straits Times Index

    3,234.30
    -17.41 (-0.54%)
     
  • S&P 500

    5,248.49
    +44.91 (+0.86%)
     
  • Dow

    39,760.08
    +477.75 (+1.22%)
     
  • Nasdaq

    16,399.52
    +83.82 (+0.51%)
     
  • Bitcoin USD

    70,601.70
    +1,066.43 (+1.53%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,955.29
    +23.31 (+0.29%)
     
  • Gold

    2,216.20
    +3.50 (+0.16%)
     
  • Crude Oil

    81.75
    +0.40 (+0.49%)
     
  • 10-Yr Bond

    4.1960
    0.0000 (0.00%)
     
  • Nikkei

    40,168.07
    -594.66 (-1.46%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • FTSE Bursa Malaysia

    1,530.60
    -7.82 (-0.51%)
     
  • Jakarta Composite Index

    7,264.80
    -45.29 (-0.62%)
     
  • PSE Index

    6,903.53
    +5.36 (+0.08%)
     

Pacific Ethanol (PEIX) Is in Oversold Territory: What's Next?

Pacific Ethanol, Inc. PEIX has been on a bit of a cold streak lately, but there might be light at the end of the tunnel for this overlooked stock. And for technical investors there is some hope when looking at PEIX given that, according to its RSI reading of 24.65, it is now in oversold territory.

What is RSI?

RSI stands for ‘Relative Strength Index’ and it is a popular indicator used by technically focused investors. It compares the average of gains in days that closed up to the average of losses in days that closed down; readings above 70 suggest an asset is overbought, while an RSI below 30 suggests undervalued conditions are present.

Other Factors

Yet, PEIX’s low RSI value isn’t the only reason to have some optimism over a coming turnaround, as there has been plenty of positive earnings estimate revision activity as of late. This is especially true when investors take a deep dive into some of these estimate revision stats and recent changes to Pacific Ethanol’s earnings consensus.

ADVERTISEMENT

Over the past two months, investors have seen 1 earnings estimate revision move higher, compared with none lower, at least when looking at the key current year time frame. And the consensus estimate for PEIX has also been on an upward trend over the past 60 days, as estimates have risen from -$0.13/share two months ago to just -$0.12/share right now.

If this wasn’t enough, Pacific Ethanol also has a Zacks Rank #2 (Buy)which puts it into rare company among its peers. So, given all of these factors, investors may want to consider getting in on this stock now (or holding on), as there are some favorable trends that could bubble up for this stock before long. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks' Top Investment Ideas for Long-Term Profit

How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Pacific Ethanol, Inc. (PEIX): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research