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Chart of the Day: PAR Technology May Have Peaked
The Chart of the Day belongs to the technology company PAR Technology (PAR) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 8/11 the stock gained 16.91%.
PAR Technology Corporation, together with its subsidiaries, provides technology solutions to the restaurant and retail industries worldwide. The company operates in two segments, Restaurant/Retail and Government. The Restaurant/Retail segment offers Punchh, an enterprise-grade customer loyalty and engagement solution; MENU, an omnichannel digital ordering solution; Brink POS, an open cloud, point-of-sale solution; Menu, a digital ordering solution; PAR Payment Services, a transaction-based payment processing service; and Data Central, a cloud software solution for back-office applications. This segment also offers Point-of-Sale Hardware; wireless headsets for drive-thru order-taking; and related peripherals. In addition, this segment provides services, including hardware repair, installation and implementation, training, and on-site and technical support services. The Government segment provides intelligence, surveillance, and reconnaissance solutions; mission systems operations and maintenance, and commercial software products; systems engineering support and software-based solutions; satellite and teleport facility operation and maintenance, engineering, and installation services; satellite control center services; and information technology infrastructure library services to the United States Department of Defense and other federal agencies, as well as licensed software products. The company was founded in 1968 and is headquartered in New Hartford, New York.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 48.14+ Weighted Alpha
- 20.08% gain in the last year
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 16 new highs and up 25.70% in the last month
- Relative Strength Index 71.44%
- Technical support level at $42.74
- Recently traded at $43.48 with 50 day moving average of $35.70
Fundamental Factors:
- Market Cap 1.21 billion
- Revenue expected to grow 14.40% this year and another10.70% next year
- Earnings estimated to increase 55.70% next year and continue to compound at an annual rate of 18.00% for the next 5 years
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analysts gave 4 strong buy,1 buy and 3 hold opinions on the stock
- Analysts have price targets between $35 and $50
- The individual investors following the stock on Motley Fool voted 33 to 3 for the stock to beat the market with the more experienced investors voting 5 to 1 for the same result
- Value Line gives the stock its average rating highest rating of 3
- CFRA's MarketScope rates it a strong sell
- 5,000 investors monitor the stock on Seeking Alpha
Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in the next 72 hours.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
