Traders are watching Treehouse Foods, Inc. (NYSE:THS) intently as the stock has moved into “oversold” range with an RSI of 14.37. The stock reached $42.00 on a recent check.
The Relative Strength Index is a technical analysis oscillator which shows price strength when comparing and contrasting downward and upward movements. It can indicate oversold and overbought price levels for a given stock.
When looking at companies that are considered to be oversold, it is important to consider the moving averages of the security. We see here that the stock is -26.75% away from the 20-Day Simple Moving Average. Their 50-Day Simple Moving Average is a difference of -33.69% from current levels. Further back, their 200-Day Simple Moving Average is -45.02% difference from today’s price. Currently, the stock is -39.04% from its 50-Day High and 4.32% from the 50-day low.
Based on the stock’s volatility for the week, which is a statistical measure of the dispersion of returns for a given stock and represents average daily high/low percentage range of 2.44% and month of 3.90%. So are analysts giving the Buy signal at this juncture? Sell-side firms currently have a consensus recommendation of 2.70 on the shares. This is based on a 1 to 5 formula where 1 indicates a Strong Buy and 5 a Strong Sell. Analysts are projecting the stock to trade at 50.73 within the next 12-18 months.