Trading Spotlight for Medifast Inc (MED)

Checking today’s screens, we are showing that shares of Medifast Inc (MED) presently have a 7 day ADX signal of Buy. This signal is generally used to help determine the market trend. The 7-day ADX direction is currently Weakening. This signal shows whether the Buy or Sell signal is getting stronger or weakening, or whether the Hold is heading towards a Buy or Sell. The 7-day average directional strength is Weak. This trend strength indicator measures the signal based on historical performance where minimum would represent the weakest, and maximum would represent the strongest. 

Every individual investor strives to make the best possible stock investment decisions. New investors may have a limited knowledge of how the stock market functions. Studying the basics and accumulating as much knowledge as possible can help the investor create a cornerstone for future success. Everybody has to start somewhere, but continually adding to the market education pool might help the investor see something that they might not have noticed before. Taking a view of the stock market from various angles can help build a more robust databank from which to work from. Because market environments are always shifting, investors may need to do a little extra homework in order to stay ahead of the curve.

Turning the focus to earnings, we note that Medifast Inc (MED), for the most recent period, posted quarterly EPS of 1.14. The trailing 12 month earnings number is currently 3.91. The company’s EPS growth over the previous quarter clocks in at -1.72%. The EPS metric is frequently used to measure a company’s profitability based on each outstanding share of common stock. When a company reports earnings results, the majority of the attention is on whether or not the EPS estimate is hit or missed. Wide gaps between estimates and actual reported figures may result in above normal stock price fluctuations after the earnings report.

Focusing in on some other data, we can see that the stock has a weighted alpha reading of +37.40. The weighted alpha gauges how much the stock has increased or decreased over the period of one full year. The weighting puts higher emphasis on more recent activity providing a more relevant measure for short-term technical analysts to use. A positive weighted alpha reading indicates that the stock has risen over the past year. A negative reading would indicate that the stock is down over that same time period. Technical traders often use the weighted alpha to help discover stocks that are building momentum.

Investors may be interested in viewing some other important technical stock indicators for Medifast Inc (MED). Investors are often focused on share price support and resistance levels. The support is simply a level where a stock may see a bounce after it has fallen. If the stock price manages to break through the first support level, the focus may shift to the second level of support. The resistance is the opposite of support. As a stock rises, it may see a retreat once it reaches a certain level of resistance. After a recent check, the stock’s first resistance level is 134.34, and the second resistance level is 137.14. On the other end, investors are keeping an eye on the first support level of 129.15, and the second support level of 126.76.

Checking in on the 20-Day Bollinger Bands signal, the current reading is Hold. This short-term indicator may be used to help spot oversold and overbought conditions. The current direction of the signal is Falling.

Investing in the stock market comes with inherent risk. Some stocks are much riskier than others, but there will always be some level of risk no matter which stocks are chosen. Individual investors managing their own portfolios are constantly on the lookout for investing tips or some kind of information that may confirm their gut feeling about a certain stock. Investors may want to be wary when listening to stock investment advice from friends, family members, or even trusted colleagues. People are usually quick to tell others about the winning stocks that they have picked in the past, but they may not be very forthcoming about discussing those portfolio clunkers. After hearing about the next big stock, investors can always do the research and check the prospect out for themselves.