Is Service Corporation International (NYSE:SCI) Ready for a Breakout?

Service Corporation International (NYSE:SCI) are being monitored closely by investors today as the name is currently priced at $41.57, a -1.86% difference from where it most recently opened.  So where is the stock headed from here?  We will take a quick look here at how the stock has performed recently.

Investors might be taking a closer look into the crystal ball to try and decipher what is in store for the second half of the year in the stock market. While cautious optimism may be the prevailing sentiment, many investors will be looking to take the portfolio to the next level. With markets still riding high, the big question is whether the momentum will push stocks higher or if the bears start to take over. There may still be a few undervalued stocks with much more upside potential ready to make big moves. Finding these stocks may involve doing a little more homework. Investors may be looking to take advantage of any little sell-off that might provide some bargain buying opportunities.    

Sometimes the stock market can be very confusing, even for the most seasoned investors. Even when expectations are met as predicted, the market may decide to move otherwise. This can cause uncertainty and second guessing. Keeping up with historical data as well as short-term and long-term trends may be very helpful. Over the past week, Service Corporation International (NYSE:SCI) shares have performed 1.71%. Pushing back over the last quarter, shares are -0.88%. Looking at stock performance for the past six months, shares are -3.33%. Since the start of the calendar year, shares have performed 3.25%.

Let’s take a quick look at some possible support and resistence levels for the stock. According to a recent spotcheck, company
Service Corporation International (NYSE:SCI) have been seen trading -9.61% away from the 50- day high. On the opposite end, shares have been trading 6.81% away from the 50-day low price. Taking a wider perspective, shares have been recently trading -11.72% off the 52-week high and 18.13% away from the 52-week low.

EPS 

EPS is a portion of a company’s profit distributed to each outstanding common share.  It acts as an indicator of a company’s profitability.  EPS is considered to be the single most important variable in determining a the price of a share.  Service Corporation International (NYSE:SCI)’s EPS growth this year is 10.70% and their trailing 12-month EPS is 2.31.  As such, analysts can estimate Service Corporation International’s growth for next year as 10.14%. 

RETURNS AND RECOMMENDATION

While looking at past performance of a particular stock is important when speculating on its future, we must take other indicators into consideration as well.  What are the returns?   Service Corporation International (NYSE:SCI)’s Return on Assets (ROA) of 3.50% is an indicator of how profitable Service Corporation International is relative to their total assets. ROA gives us an idea of how efficient management is at using assets to generate earnings  We get ROA by dividing their annual earnings by their total assets.  Service Corporation International’s Return on Equity (ROE) is 29.20%, measure their profitability and reveals how much profit they generate with the money their shareholders. We calculate ROE by dividing their net income by their shareholder’s equity.  Finally, Service Corporation International’s Return on Investment, a measure used to evaluate the efficiency of an investment, calculated by the return of an investment divided by the cost, stands at 11.60%.  Analysts on a consensus basis have a 1.50 recommendation on this stock.

Investors may be circling the wagons wondering what’s in store for the stock market over the next few months. Capitalizing on the current trends may be just what the doctor ordered. Searching for value in the current investing landscape may be a priority for some investors. The mindset of one investor may be completely different from another. Sometimes stocks that look too good to be true actually are, and those that are actually very good may not look that enticing. Keeping a close watch on technicals and fundamentals may be a good way to start filtering through the vast sea of equities. Many stock enthusiasts will also keep a sharp focus on positive estimate revisions to help gain an edge in the markets. Whatever the strategy, investors will no doubt be searching far and wide for consistent outperformers.