Technical Speculator.com Trade-of-the-Week: Otter Tail Corporation (OTTR)

By Tech_Spec
9-July-2018 7:20:50 AM
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This week’s Trade-of-the-Week comes from the utility sector of NASDAQ.  OTTR is a broad based firm that offers to its clients a variety of services and products.  What attracted us to this stock was its trading pattern.  The equity has advanced steadily since 2009 and displays no signs of weakness.  We believe our target of $56.50 should be reached  by year-end.

Company Profile: Otter Tail Corporation, together with its subsidiaries, engages in electric, manufacturing, and plastics businesses in the United States. The company’s Electric segment produces, transmits, distributes, and sells electric energy in Minnesota, North Dakota, and South Dakota; and operates as a participant in the Midcontinent Independent System Operator, Inc. markets. This segment generates electricity through coal, wind and hydro, and natural gas and oil sources. It serves approximately 130,000 residential, commercial, industrial, and other customers.  It also manufactures and sells thermoformed products for the horticulture industry; and clamshell packing, blister packs, returnable pallets, and handling trays for shipping and storing odd-shaped or difficult-to-handle parts for customers in the medical and life sciences, industrial, recreation, and electronics industries.The company was founded in 1907.

Fundamentals:

Trailing P/E: 24.96, Forward P/E: 23.73, EPS: 1.99

PEG: 2.73, P/S: 2.24, P/B: 2.78

Profit margin: 9.02%, Operating Margin: 14.78%

Quarterly Earnings Growth: 33.90%, Current Ratio: 1.45, Trailing Dividend Yield: 2.63%

Additional Fundamental Data: https://finance.yahoo.com/quote/OTTR/key-statistics?p=OTTR

Technicals:

Recently broke out of a 7-month consolidation

New 52-week high, New all-time high

Buying Momentum (RSI) is positive and trending higher, buying volume is neutral

1st price support level is $47.90, safety stop is at $45.50

The target is $56.50

Suggested buying approach: Buy the stock at the current price level. If there is a pull back, as long as OTTR is above the safety stop, wait for confirmation of support and then add to the position if desired. Always use a 3% trailing stop.

Additional trading opportunities and research is on www.technicalspeculator.com

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Author: Tech_Spec

Canada’s only Master of Financial Technical Analysis (MFTA). This 4 – 5 year program offered by the International Federation of Technical Analysts (IFTA) in England is regarded as the global standard. • Instructor of Technical Analysis for the Canadian Securities Institute (CSI). My role is teaching market analysis to industry professionals. • Financial Technical Analyst offering 25 years experience in the financial and investment service industry. • Editor and owner of the Technicalspeculator.com, an on-line independent financial market research and newsletter website. • Registered Securities Advisor

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