After looking for stocks with higher betas, we can see that Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM) has a current beta of 1.22. The beta of a stock is typically used as a historical volatility indicator in relation to the overall market. Beta is a measurement of the stock price fluctuation, and may be used to gauge how fast the price may rise or fall. Beta compares the returns of company stock to return of the market as a whole. A beta of 1 would indicate that the stock price moves with the market. A beta below 1 might indicate that the stock is less volatile than the market. A beta above 1 indicates that the stock price is more volatile than the market in theory. Checking in on current price action, company shares had recently touched 42.17. From the session open, shares have moved 0.84%. Investors will be watching to see how the stock reacts to market influences over the next few weeks. As we near the halfway point of the calendar year, investors may be trying to figure out if now is the time to get in on the name, or whether to wait for a better opportunity.
When it comes to investing in the equity market, discipline can play a major role in achieving ones goals. A few bad moves can send the investor’s confidence spiraling. Acting purely on emotion can lead to impulsive decisions that may cause the losses to pile up. Creating a solid plan and following through with the plan can help investors stay on track and focus on the proper details. Markets are constantly going up and down and the investing ride can sometimes be a bumpy one. Being able to see the big picture and focus on the important data can help keep the investor tuned in to the right channel. Investors who expect to jump into the market and immediately start raking in the profits may find out fairly quickly that trading without a plan can be a recipe for defeat.
Let’s take a look at some of the numbers for Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM). Stock price performance for the past week is currently noted at -2.10%. If we look back to the beginning of the calendar year, shares have performed -28.85%. Looking back over the past full-year, shares have performed -8.47%. Over the past month, the stock has performed -11.66%. Over the last quarter, the stock has performed -18.45%. Briefly looking at some recent volatility numbers, we can see that shares have been noted at 3.20% for the week, and 2.95% for the past month.
We are also noting that Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM) was recently seen trading -15.03% away from the 50-day high and 2.06% separated from the 50-day low. Taking a broader view, the current separation from the 52-week high is -33.88%, and the distance from the 52-week low is currently 2.06%. Let’s also look quickly at some analyst views on company shares. At the time of writing, the consensus target price for the company is $56.62. The consensus recommendation provided by covering sell-side analysts is currently 2.30. This number lands on a scale from 1 to 5. Following this scale, a rating of a 1 or a 2 would indicate a consensus Buy recommendation. A rating of 4 or 5 would represent a consensus Sell recommendation. A rating of 3 would indicate a Hold recommendation.
Some dedicated market watchers will preach the old adage, nothing ventured nothing gained. Some may adhere to the slow and steady mindset. The correct play for one investor may not be the same for another. Some may choose to be fully invested while others may keep some cash on the sidelines. Active stock market investors may have to find that perfect balance between being too risky or playing it too safe. If the market keeps charging higher in the second half of the year, investors may have to decide whether to take profits, or let it ride.
After a recent check, Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM) shares have been seen trading -6.39% away from the 20-day moving average. Zooming out to the 50-day, we can see that shares are currently trading -9.70% off of that mark. Looking at the 200-day moving average, shares have been trading -18.81% away from that value. The moving average uses the sum of all of the previous closing prices over a certain time period and divides the result by the number of prices used in the calculation. Many investors will opt to use multiple time periods when examining moving averages. Moving averages are considered to be lagging indicators, and they may prove to be very useful for spotting peaks and troughs. They may also be used to help the trader calculate sturdy support and resistance levels for the stock.
Some investors will scour the markets looking for cheap, quality stocks. These stocks can be attractive for investors looking to find a bargain that could turn into a big winner. Investors may be cautious when searching for these types of stocks. Often times, a stock will see a huge jump and then everyone will hop on the bandwagon to buy without checking into the fundamentals. Sometimes this strategy may work out, but in many cases, the stock has already made the run and become too expensive to add to the portfolio. Conducting diligent research and constantly adding to the individual’s overall market education level may help the investor sift through the sea of stocks and find those names that are really worth getting into.