According to the U.S. Department of Labor, February’s growth of new jobs outside of the farm sector reached 295 000 units, thereby seriously outpacing analyst expectations, Market Leader reports. The rate of unemployment went down to 5,5%, the lowest level since May 2008. Still, the earnings growth remained unchanged at 2% per year. This has been going on since th end of the global recession on 2009, Masterforex-V Academy reports.
After publishing such strong data, the stock market felt some pressure due to the expectations of higher interest rates in mid 2015. It should be noted that the Fed has been keeping the rates at ultra low levels for quite a long time since the latest financial crisis.
At the same time, it is interesting to note that on March 9th, we celebrated the 6th anniversary of the U.S. stock bull market which started in 2009.
Yesterday, the U.S. stock indexes showed no signs of weakness. However, the trading volume dropped by 10-15% in comparison with Friday’s figures. This cannot be treated as another bullish sign indicating that the bull market is still strong. S&P500 and Nasdaq gained 0,4% and 0,3% respectively.
The buyers of Tesla’s stock got active again yesterday. This was followed by a 2% drop in price, which was triggered by the news of layoffs in China. It is interesting to note that the previous reviews of the company made by Masterforex-V Academy contained recommendations to go short.
Lannett Company. Analysis by Masterforex-V Academy
According to the results of the fundamental analysis performed by the experts of the Options Trading Department of Masteforex-V Academy, Lannett Company is currently outperforming 99% of other companies in several aspects including quarterly income growth. The company’s market cap is $2,3 billion. there are some 35,8 million shares circulating in the market of the company’s stock.
In early February, Lannett Company reported an quarterly income increase up to $1,21 per share, which corresponds to +163% relative to the same reporting period of 2014. Believe it or not, the company’s quarterly earnings boosted by 368% in 3 years. At the same time, the sales went up by 71% (y/y).
Multiple analysts upgraded their 2015 sales and income predictions for Lannett Company from $370-390 million up to $395-405 million. The next report is scheduled for May 5th, 2015. The average annual income growth is currently staying at 33%.
From the standpoint of technical analysis, the recent break coupled with a volume hike (Point 1 in the chart below) indicates the fact that some major institutional players purchased a bit of the company’s stock.
The 57 area used to be a good entry point for the bulls. A break above 65,79 coupled with any above-the-average volume may be considered as another entry point. The best confirmation sign would be another bull momentum shown by U.S. stock indexes.
