- Genworth Financial (GNW) is a Fortune 500 insurance firm with strong momentum.
- Shares recently hit a new 10-year high and are up 31% over the past year.
- GNW holds a 100% “Buy” technical opinion from Barchart and trades above key moving averages.
- Analyst sentiment is mixed. Wall Street targets range from $9.50 to $11, with some rating it a “Sell” and others calling it undervalued.
Today’s Featured Stock
Valued at $3.71 billion, Genworth Financial (GNW) is a Fortune 500 insurance holding company. Genworth has leadership positions in offerings that assist consumers in protecting themselves, investing for the future, and planning for retirement.
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. GNW checks those boxes. Since the Trend Seeker signaled a buy on July 25, the stock gained 12.44%.
GNW Price vs. Daily Moving Averages:
Barchart Technical Indicators for Genworth
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.
Genworth hit a new 10-year high of $9.06 in intraday trading on Sept. 19.
- Genworth has a Weighted Alpha of +40.33.
- GNW has an 100% “Buy” opinion from Barchart.
- The stock gained 30.96% over the past year.
- GNW has its Trend Seeker “Buy” signal intact.
- Genworth is trading above its 20-, 50-, and 100-day moving averages.
- The stock made 6 new highs and gained 3.80% in the last month.
- Relative Strength Index (RSI) is at 66.95%.
- There’s a technical support level around $8.83.
Don’t Forget the Fundamentals
- $3.71 billion market capitalization.
- 20.23x trailing price-earnings ratio.
- Earnings are projected to increase by 12.50% next year.
Analyst and Investor Sentiment on Genworth
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 mixed on Genworth, but individual investors think otherwise.
- The Wall Street analysts tracked by Barchart have issued 1 “Moderate Buy” and 1 “Hold” opinion on the stock.
- Their price targets are $9.50.
- Value Line gives the stock its "Below Average” rating but with a price target of $11, representing a 20% gain.
- CFRA’s MarketScope Advisor rates it a “Sell.”
- Morningstar thinks the stock is 14% undervalued with a fair value of $10.62
- 2,344 investors following the stock on Motley Fool think the stock will beat the market while 386 think it won’t.
- 24,180 investors monitor the stock on Seeking Alpha, which rates the stock a “Strong Buy” and comments: “GNW’s stock momentum is robust, with a 1-year price performance of [30%], significantly exceeding the sector’s 12%. This reflects strong investor confidence and a positive sentiment toward the company’s future prospects.”
The Bottom Line on Genworth
I caution that GNW 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.
