- Kimball Electronics (KE) shows strong technical momentum, hitting a new two-year high on Sept. 8 and trading above key moving averages.
- Shares maintain a 100% “Buy” Barchart opinion.
- KE stock is up nearly 71% over the past year.
- While KE is profitable and insulated from inventory risk, I caution it’s volatile and speculative — strict risk management is essential.
Today’s Featured Stock
Valued at $729 million, Kimball Electronics (KE) is a contract manufacturer of durable goods electronics. The company specializes in durable electronics for the medical, automotive, industrial and public safety markets. It provides design, engineering, manufacturing, packaging, and distribution of electronic assemblies and circuit boards on a contract basis to a variety of industries.
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. KE checks those boxes. Since the Trend Seeker signaled a buy on Aug. 12, the stock gained 43.76%.
KE Price vs. Daily Moving Averages:
Barchart Technical Indicators for Kimball 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.
Kimball hit a new two-year high of $30.28 in morning trading on Sept. 8.
- Kimball has a Weighted Alpha of +74.30.
- KE has an 100% “Buy” opinion from Barchart.
- The stock gained 70.72% over the past year.
- KE has its Trend Seeker “Buy” signal intact.
- Kimball is trading above its 20-, 50-, and 100-day moving averages.
- The stock made 15 new highs and gained 50.33% in the last month.
- Relative Strength Index (RSI) is at 89.53%.
- There’s a technical support level around $29.38.
Don’t Forget the Fundamentals
- $729 million market capitalization.
- 26.57x trailing price-earnings ratio.
- Revenue is expected to be down by 5.77% this year but rebound by 4.02% next year.
- Earnings are projected to increase by 12.72% this year and an additional 14.26% next year.
Analyst and Investor Sentiment on Kimball 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 are positive on Kimball.
- The Wall Street analysts tracked by Barchart have issued 4 “Strong Buy” and 1 “Hold” opinion on the stock.
- Their price targets are between $19.00-$29.50.
- Value Line gives the stock an “Average” rating.
- CFRA’s MarketScope Advisor rates it a “Strong Buy.”
- Morningstar thinks the stock is 19% undervalued with a fair value of $36.93.
- The only investor following the stock on Motley Fool thinks the stock will beat the market.
- 2,180 investors monitor the stock on Seeking Alpha, which rates the stock a “Strong Buy.”
The Bottom Line on Kimball Electronics
Kimball, being a contract manufacturer with all orders presold and insulated from inventory carrying cost, should be able to stay profitable.
I caution that KE is volatile and even speculative in the current environment, which means investors should use strict risk management and stop-loss strategies.
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.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
