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Sentiment Analysis On Technology Stocks: Bullish On NICE Systems Ltd. (NICE) (Apr-22)

|Includes: NICE-Systems Limited (NICE)

(Original post can be found here)

After analyzing the sentiment of recent news headlines on the Technology industry, it becamse apparent that the media has turned bullish on shares of NICE Systems Ltd. (NASDAQ:NICE).

But should you be buying into this optimism, or is this a extreme bullishness a contrarian signal?

The Significance of Herd Behavior and Extreme Investor Sentiment

Overwhelming consensus on a company can drive stock prices beyond their true fundamental value--understating or overstating inherent risks. These mispricings often present an opportunity for investors willing to go against conventional wisdom.

This is the goal of Contextuall: to identify examples where herd behavior has reached extreme levels.

We believe that, by identifying these areas of one-sided sentiment, investors could use these contrarian signals as a starting point for their own research.

Analyzing Media Sentiment for NICE Systems Ltd. (NICE)

Based on an analysis of recent NICE Systems Ltd. (NICE) news articles, about 63.64% of headlines have been classified as Positive, higher than the Technology industry average of 29.50%.

3.90% of headlines have been classified as Negative (vs. an industry average of 12.54%).

Considering the academic research on investor herd behavior, is this extreme optimism a potential sell signal? Have investors become too bullish?

What do you think? Let us know in the comment section.