AZZ Inc. (NYSE: AZZ) 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.
U.S. stocks flipped between small losses and gains early Tuesday morning as investors maintained a cautious stance following a sharp postelection rally.
The S&P 500 index SPX, -0.04% was off by about 1 point, or less than 0.1%, at 2,267, with seven of the 11 main sectors trading lower. The Dow Jones Industrial Average DJIA, -0.13% was off 33 points, or 0.2%, to 19,853.
Meanwhile, the Nasdaq Composite Index COMP, +0.05% traded in record territory, after closing at an all-time high for the second session in a row on Monday.
Analysts at Stifel Nicolaus upgraded shares of AZZ Inc. (NYSE: AZZ) from Sell to Hold today. The company currently has a rating of Hold on the stock. A number of other analysts have issued reports on the stock recently, and the company has earned a consensus one-year price target of $58.50, less than the opening price of $59.30. AZZ Inc. stock has a 52-week high of $67.98. Share prices often trend to the upside on recommendations and new price targets of professional analysts.
Yesterday AZZ Inc. (NYSE: AZZ) shares last traded at $59.70, a spike of $2.35 from the previous closing price. Opening at $59.30, they varied from $57.45 and $59.90 throughout the day.
AZZ Inc. (NYSE: AZZ) now has a market cap of 1.55B.
AZZ Inc. (NYSE: AZZ) Average Daily Trading Volume
The stock’s average daily volume is 166,081 shares out of a total float 25,599,000 and some 22,288 shares traded hands yesterday, 25 percent below the norm. lower than normal. Look for trading volume to pick up in the coming days as momentum traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these have teams of analysts researching thousands of stocks. So watching their interests is a good way to ensure you are buying the right stocks.
AZZ Inc. (NYSE: AZZ) 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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
With that in mind, AZZ Inc. (NYSE: AZZ) now has a 50-day MA of $64.54 and 200-day MA of $61.97. It has traded in a 52-week range between $47.04 – 67.98 and today’s last price is 12.18%% lower than the 52 week high of $67.98.
Earnings growth is a crucial factor to consider when investing in stocks and investors watch for companies that have grown their earnings at least 25% or more for the past 3 years.
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