Express, Inc. (NYSE: EXPR) is a fashion retail company that offers apparel and accessories in the United States and Puerto Rico. The company has been struggling in recent years, and its stock price has plummeted. However, some technical analysts believe that the stock is poised for a major rebound.
Technical Analysis
The technical analysts who are bullish on Express point to the fact that the stock has recently formed a bullish cup and handle pattern. This pattern is often a precursor to a significant price increase. Additionally, the stock is trading below its 200-day moving average, which is a sign of weakness. However, the analysts believe that the stock is about to break above this moving average, which would be a bullish signal.
Fundamentals
While the technical analysts are bullish on Express, the fundamentals of the company are not as strong. The company has been losing money for several years, and its debt load is high. Additionally, the company is facing increasing competition from online retailers.
Conclusion
Despite the weak fundamentals, the technical analysts believe that Express is poised for a major rebound. They point to the bullish cup and handle pattern and the fact that the stock is trading below its 200-day moving average. However, investors should be aware of the risks associated with investing in Express, including the company’s financial problems and the increasing competition from online retailers.
Here are some additional details about the technical analysis of Express’s stock price:
- The cup and handle pattern is a bullish reversal pattern that is formed when a stock price falls to a low point, then rises to a higher point, and then falls back to the original low point. The stock price then breaks above the resistance level that was formed at the top of the handle, which is a sign of a bullish reversal.
- The 200-day moving average is a long-term moving average that is used to track the trend of a stock price. When a stock price is trading below its 200-day moving average, it is considered to be in a downtrend. However, when a stock price breaks above its 200-day moving average, it is considered to be a bullish signal.
Here are some additional details about the fundamentals of Express:
- The company has been losing money for several years. In the most recent quarter, the company lost $0.25 per share.
- The company has a high debt load. As of the end of the most recent quarter, the company had $1.3 billion in debt.
- The company is facing increasing competition from online retailers. Online retailers such as Amazon and Shein offer a wider selection of products at lower prices than Express.
Overall, the technical analysis of Express’s stock price is bullish. However, investors should be aware of the risks associated with investing in the company, including the company’s financial problems and the increasing competition from online retailers.