Affirm Holdings, Cinemark Holdings, Synovus Financial and Planet Fitness advanced on Monday, boosted by analyst upgrades. Planet Fitness stock and Synovus eyed buy points.
Cinemark stock rose out of buy range. Affirm stock regained a key level. The four stocks share a favorable trait: strong up/down volume ratios, a sign of heavy institutional demand over the past 50 days.
It's a healthy signal when a stock shows favorable volume activity, along with nice price action. Investors should pay attention to both as they look for winning stocks.
Affirm Stock
Analysts at Goldman Sachs assumed coverage of the "buy now, pay later" payment provider with a buy rating and $42 price target. They cited Affirm's vast distribution network, which is seen supporting sustainable growth in gross merchandise volume over time. Last week, Apple said it would shut down its Pay Later program. Instead, Apple device users will soon be able to tap into Affirm's buy now, pay later loans to purchase products in installments.
Shares of Affirm Holdings jumped nearly 13% to 33.70 in big volume on the stock market today. Affirm stock retook the downward-sloping 50-day moving average on Monday. The financial technology stock has been straddling that key support level most of this year after shares more than doubled in the final two months of 2023.
Affirm stock shows an up/down volume ratio of 0.9. Investors would generally want to see a ratio of 1.0 or better, as a sign of heavy institutional demand. But close to 1.0 is good enough. The up/down volume ratio covers 50 days of trading. It divides the total volume on up days by total volume on down days.
On the minus side, the relative strength line for Affirm stock is lagging this year, reflecting the stock's January to June consolidation.
Planet Fitness Stock
Analysts at TD Cowen upgraded the gym operator to a buy rating from hold, with a price target of $92, up from $66. They cited a turnaround opportunity, with positive expected impacts from price increases.
Shares of Planet Fitness popped almost 4% in early action Monday, before paring back to a 0.4% gain, closing at 73.02. That left Planet Fitness stock 3% below a 75.02 buy point from a cup-with-handle base, begun in January. MarketSurge charts also show a 75.86 buy point from an earlier, cup-with-handle base.
A fair amount of both bases formed below their 50-day/10-week moving average, which can signal weakness. Also, the handle of the more recent pattern is wedging higher. This can also warn of potential weakness.
However, the leisure services stock has rallied the past five weeks in a row, reclaiming the 50-day/10-week line. PLNT stock shows an up/down volume ratio of 1.4. It also shows a rising RS line, which reflects its outperformance vs. the S&P 500 index.
Cinemark Holdings Stock
Analysts at Roth MKM upgraded the movie theater chain to buy from neutral, with a price target of $26, up from $19. They cited improvements expected in box office performance, plans to reduce debt, and expectations for the reintroduction of capital returns to shareholders. They also cited attractive valuation.
Shares of Cinemark Holdings popped 6.5% to 20.75 on Monday. Cinemark stock topped the 5% chase zone from a breakout past a 19.31 double-bottom buy point. That means shares are extended or beyond buy range. The movie leisure stock cleared the double-bottom entry on June 18 after rallying off the 50-day line in earlier sessions. It shows an up/down volume ratio of 1.0. Moreover, the RS line is poised to strike a consolidation high, which would be a favorable sign.
Synovus Financial Stock
Analysts at Barclays upgraded the financial services company to overweight from equal weight, with a price target of $46, up from $39. The firm said "now is the time to reengage" given that the Columbus, Ga.-based bank's efforts to strengthen its capital and earnings are mostly complete.
Shares of Synovus Financial climbed 2.8% to 38.39 on Monday. Synovus Financial stock regained the 50-day line within a flat base showing a 40.69 buy point. Shares are less than 5% from the entry. Synovus stock shows an up/down volume of 0.8. Its RS line is improving, but remains below the consolidation peak for now.
