QTWO Strong Sell Signal with Caveats

about 1 month ago

"There were two that moved to a strong sell. And one of them was QTW uh let's see Q2 QTWO take two and why was it an immediate sell because it moved to strong sell in the portfolio and when that happens it immediately gets pulled out of the portfolio. Now what I want to point out is this was up 14% yesterday. So, if you're pulling it out, understand why you're pulling it out. It's because the quant rating has moved. Well, let's take a look at the quant rating versus 6 months ago. Okay, 6 months ago, the valuation was a D. Well, 6 months ago, the stock was up 11%. It's gotten worse. So, again, valuation has gotten worse. When you look at growth, it's gotten better. When you look at profitability, it's gotten better. But one of the biggest things is the momentum and seeking alpha tells you why it's a strong sell."

The speaker reviews the case for QTWO being downgraded to a strong sell by the Alpha Pix quant model. Despite a 14% rally yesterday, deteriorating valuation metrics combined with technical signals (MACD and RSI) have triggered the sell recommendation. This commentary provides insight into the contrasting improvement in growth and profitability versus weakening valuation and momentum.

Related Stocks