Stockal Data shows Analyst Sentiment can predict Price movement

As published in Benzinga on 9th August. The original article can be found here.

An analysis of Stockal data shows that the Confidence Meter, a 1-100 scale measuring the combined perspectives of over 200 Wall Street analysts, can be an indicator for potential price action as far as several months in advance.

Stockal took a look at four major tech stocks to see how correlated the two are. Here are the results.

Apple Inc.


The Breakdown:

Looking at the chart above, you can see that right around March 2015 the Confidence Meter for Apple fell from around 80 to below 60. Around the same time, Apple’s stock began to trade down from around $130 to $123.

In late 2015, the Confidence Meter fell from near 90 to all the way below 60. Apple’s stock followed suit by trading down from nearly $120 to below $100 as it entered 2016. The Confidence Meter has been bullish on Apple as of late, and the stock has traded up over 11.5 percent over the past month.

Netflix, Inc.


The Breakdown:

From January until early July of 2015, heading into their second quarter earnings, the Confidence Meter trended upward from 50 to 96. During that same time the stock followed suit, going from around $350 to over $700. The sharp subsequent drop in price was preceded by a few days by a drop in the Confidence Meter.

Facebook Inc


The Breakdown:

The spring of 2014 saw the Confidence Meter shoot up from about 75 to 96. Near the end of the year, the stock traded up from about $65 to $80. When the Confidence Meter fell from about 90 to 75 in January of 2016, Facebook stock followed suit by simultaneously falling from about $104 to $94. The Stockal Confidence Meter is bullish on Facebook currently, and the stock is trading up over seven percent over the past month after a successful earnings report in July.

Alphabet Inc 


The Breakdown:

In late 2014 the Confidence Meter on Google fell from around 90 to just under 80, and Google stock responded by falling from around $590 to $540. When the Confidence Meter rose from around 75 to just above 80 in late 2015, and the stock spiked from around $610 to $750. The Stockal Confidence Meter has been bullish on Google as of late, and the stock is up over 10 percent over the last three months.

Kinder Morgan and IMAX may be great long term investments.

KMI –  Kinder Morgan Inc is an energy infrastructure company which builds Natural Gas Pipelines, Terminals etc in the US and Canada.

KMI – Kinder Morgan Inc

Fundamentals Previously closed at 17.26
Day’s high 17.37
Day’s low 16.82
P/E ratio 663.85
EPS 0.03


Analysts opinion The National Energy Board (NEB), Canada’s energy regulator has approved Kinder Morgan’s plan to expand its Trans mountain Oil Pipeline. This is a $6.8 Billion Project, which aims to boost the capacity to 890,000 bpd from the current 300,000 bpd. At the current price, the stock is trading at support levels. Analyst confidence meter, a proprietary algorithm of Stockal gives a 72% buy based on analyst ratings.
Sentiments KMI rose 1.2% today, suggesting a positive sentiment due to the news.
Social Media Pulse The stock has 25% lower social media chatter than usual.


IMAX – IMAX Corporation is an Entertainment technology company which deals with theater system maintenance, Film Production, film distribution, film post-production etc.

IMAX – IMAX Corporation

Fundamentals Previously closed at 32.13
Day’s high 32.61
Day’s low 31.60
P/E ratio 35.00
EPS 0.92


Analyst opinion IMAX’s future ventures look great right now. It announced its partnership with Google yesterday for working on a Virtual Reality Camera, capturing 360 Degree Images which is expected to be ready for use in 18 months! It is also partnering with Starbreeze, a Sweden-based technology developer for VR. IMAX has taken a leap in the entertainment industry by intending to use VR cameras to create entertainment content. It has good fundamentals with revenue growths, reasonable debt levels and great ROE. Confidence Meter reads a 77% buy. This a proprietary algorithm of Stockal tracks Analyst confidence in the Stock.
Sentiments The sentiment index is 50% positive on Stockal proprietary algorithm.
Social Media Pulse The stock has 100% higher social chatter than usual.


Disclaimer: This blog contains an aggregated view of analysts and opinions by the author. Do not consider this as financial advice. See http://stockal.com/legalities/