- Frequency Electronics (FEIM) is a global leader in high-precision timing and frequency control products.
- FEIM stock hit new all-time highs in Friday morning trading.
- The stock currently exhibits strong technical buy signals, superior momentum, and a Trend Seeker “Buy” signal as of Oct. 2.
- FEIM demonstrates consistent price appreciation, making it an attractive candidate for investors seeking growth in the electronics sector.
Today’s Featured Stock
Valued at $337 million, Frequency Electronics (FEIM) is a world leader in the design, development, and manufacture of high precision timing, frequency control, and synchronization products for space and terrestrial applications.
Frequency Electronics’ products are used in commercial, government, and military systems, including satellite payloads, missiles, UAVs, aircraft, GPS, secure radios, and wireless communication networks. Frequency has received over 60 awards of excellence for its achievements in providing high performance electronic assemblies for over 120 space programs.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. FEIM checks those boxes. The Trend Seeker signaled a new “Buy” on Oct. 2.
FEIM Price vs. Daily Moving Averages:
Barchart Technical Indicators for Frequency Electronics
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
Frequency Electronics hit an all-time high of $35.82 in morning trading on Oct. 3.
- FEIM has a Weighted Alpha of +167.80.
- Frequency Electronics has an 100% “Buy” opinion from Barchart.
- The stock gained 195.67% over the past year.
- FEIM has its Trend Seeker “Buy” signal intact.
- Frequency Electronics is trading above its 20-, 50-, and 100-day moving averages.
- The stock made 6 new highs and gained 11.7% in the last month.
- Relative Strength Index (RSI) is at 63.37.
- There’s a technical support level around $34.15.
Don’t Forget the Fundamentals
- $337 million market capitalization.
- 14.96x trailing price-earnings ratio.
- Revenue is projected to grow 17.9% next year.
- Earnings are estimated to increase 23.85% next year.
Analyst and Investor Sentiment on Frequency Electronics
I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping stock, it’s hard to make money swimming against the tide.
It looks like Wall Street analysts have not discovered FEIM, but individual investors have.
- The one Wall Street analyst tracked by Barchart has issued a “Strong Buy" opinion on the stock with a $43 price target.
- Value Line gives the stock its “Average” rating.
- CFRA’s MarketScope Advisor rates it a “Sell.”
- Morningstar thinks the stock is 71% overvalued.
- 60 investors following the stock on Motley Fool think the stock will beat the market while 10 think it won’t.
- 1,680 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”
The Bottom Line on Frequency Electronics
FEIM has not gotten the attention of Wall Street or major financial sites but has a following with individual investors. My major concern is the run-up in the price, which may have left it overvalued.
Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.
Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
