Olympic Steel, Inc. (NASDAQ: ZEUS) shares rose in value in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, U.S. stocks edged lower Monday, with major indexes retreating from record levels.
The Dow Jones Industrial Average DJIA, -0.31% fell 48 points, or 0.2%, to 19,916, while the S&P 500 index SPX, -0.29% lost 5 points to 2,272, a drop of 0.2%. The Nasdaq Composite Index COMP, -0.03% rose 4 points to 5,529, a gain of about 0.1%.
Analysts at KeyCorp upgraded shares of Olympic Steel, Inc. (NASDAQ: ZEUS) from Sector Weight to Overweight today. With a rating of Overweight on the shares, Olympic Steel, Inc. has a 52-week high of $31.19. A number of other analysts have commented on the company recently, and Olympic Steel, Inc. has earned a consensus one-year price target of $25.50, above the opening price of $24.96, a difference of 10.02 percent. Share prices sometimes get a bounce to the upside when analysts upgrade a stock.
Shares of Olympic Steel, Inc. (NASDAQ: ZEUS) opened at $24.96 yesterday and traded in a range between, $24.22 and $26.19, and last traded at $25.44, which is an increase of $1.43 from the previous closing price.
Olympic Steel, Inc. (NASDAQ: ZEUS) now has a market cap of 278.90M.
Olympic Steel, Inc. (NASDAQ: ZEUS) Average Daily Trading Volume
31,055 shares traded hands yesterday, 59 percent below the norm, out of a total float 9,091,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Olympic Steel, Inc. (NASDAQ: ZEUS) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
With that in mind, Olympic Steel, Inc. (NASDAQ: ZEUS) now has a 50-day MA of $25.67 and 200-day MA of $23.91. It has traded in a 52-week range between $7.98 – 31.19 and today’s last price is 18.44%% lower than the 52 week high of $31.19.
Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings at least 25% or more for 3 consecutive years.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of the website. Readers should not consider statements made by the author as formal recommendations and should consult their financial adviser before making any investment decisions. To read our full disclosure, please see our terms and conditions page.