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Is The Phoenix Company Too Risky?

|Includes:The Phoenix Companies, Inc. (PNX)

The Chart of the Day is The Phoenix Companies (NYSE:PNX). It seems on the surface to have some pretty good technical indicators buy I want you to read them all so you can see when a stock seems just too good to be true.

It is a provider of wealth management products and services offered through a variety of select advisors and financial services firms to serve the accumulation, preservation and transfer needs of the affluent and high net worth market, businesses and institutions. The company refers to its products and services together as its wealth management solutions. The company offers a broad range of life insurance, variable annuity and investment management solutions through a variety of distributors.

Barchart's Opinion trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 10 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com web site when you read this report.

Barchart technical indicators:

  • 100% Barchart technical buy signals
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 20 new highs and up 51.07% in the last month
  • Relative Strength Index 89.87%
  • Barchart computes a technical support level at 38.32
  • Recently traded at 40.79 with a 50 day moving average of 30.12


Fundamental factors:

 

  • Market Cap - $236.58 million
  • P/E 6.68
  • Revenue predicted to decrease 18.50% this year and decline another 6.00% next year
  • Earnings are estimated to shrink 212.20% this year but turn around and increase 214.60% next year and continue to increase by 15.00% annually for the next 5 years
  • Wall Street analysts issued 1 hold and 1 sell report
  • Financial Strength C

Summary: Although the stock is on the new high you have to look beyond the chart and look for red flags. The stock shot up by 51.07% in the last month and has a Relative Strength Index approaching 90%. Too much, too fast. No analysts have a buy recommendation and the Financial Strength in only a C. Revenue has a negative trend. I hope you look at all the signals and decide this stock just has too much risk and probably not enough upside potential. Always look at all the numbers before you buy.

Stocks: PNX