The Value Trap: Spectrum Brands Holdings, Inc. (SPB), Coty Inc. (COTY)

Spectrum Brands Holdings, Inc. (NYSE:SPB) is offering a substantial bargain with a P/S ratio at 0.64. The broad Personal Products industry has an average P/S ratio of 2, which represents premium over the sector’s 1.71. In the past 13-year record, this ratio went down as low as 0.18 and as high as 1.3. Also, it is up from 65% of the total 750 rivals across the globe.

SPB traded at an unexpectedly high level on 07/19/2018 when the stock experienced a -1.85% loss to a closing price of $77.4. The company saw 1.18 million shares trade hands over the course of the day. Given that its average daily volume over the 30 days has been 0.5 million shares a day, this signifies a pretty significant change over the norm.

Spectrum Brands Holdings, Inc. (SPB) Analyst Gushes

We have seen a -4.72% fall in the stock price over the last 30 days and a -21.25% decline over the past 3 months. Overall, the share price is down -26.37% so far this year. Additionally, SPB had a day price range of $76.89 to $79.02.

Spectrum Brands Holdings, Inc. (SPB) Price Potential

In order to determine directional movement, the 50-day and 200-day moving averages for Spectrum Brands Holdings, Inc. (NYSE:SPB) are $81.25 and $91.65. Given that liquidity is king in short-term, SPB is a stock with 56.65 million shares outstanding that normally trades 13.49% of its float. The stock price recently experienced a 5-day loss of -7.75% with 2.55 average true range (ATR). SPB has a beta of 0.86 and RSI is 37.34.

Investors also need to beware of the Coty Inc. (NYSE:COTY) valuations. The stock trades on a P/S of 1.14, which suggests that the shares are attractive compared with peers. The broad Personal Products industry has an average P/S ratio of 9.24, which is significantly worse than the sector’s 5.63. In the past 8-year record, this ratio went down as low as 1.05 and as high as 2.68. Also, it is down from 64% of the total 1585 rivals across the globe.

Coty Inc. (COTY)’s Lead Over its Technicals

Coty Inc. by far traveled 6.66% versus a 1-year low price of $12.92. The share price was last seen -0.36% lower, reaching at $13.78 on 07/19/2018. At recent session, the prices were hovering between $13.685 and $13.995. This company shares are 22.57% off its target price of $16.89 and the current market capitalization stands at $10.2B. The recent change has given its price a -2.14% deficit over SMA 50 and -36.44% deficit over its 52-week high. The stock witnessed -4.7% declines, -19.74% declines and -31.13% declines for the 1-month, 3-month and 6-month period, respectively. To measure price-variation, we found COTY’s volatility during a week at 2.66% and during a month it has been found around 2.62%.

Coty Inc. (NYSE:COTY) Intraday Metrics

Coty Inc. (COTY) exchanged hands at an unexpectedly low level of 3.31 million shares over the course of the day. Noting its average daily volume at 6.01 million shares each day over the month, this signifies a pretty significant change over the norm.

Coty Inc. Target Levels

The market experts are predicting a 66.91% rally, based on the high target price ($23) for Coty Inc. shares that is likely to be hit in the 52 weeks. Analysts anticipate that traders could see stock price minimum in the $13 range (lowest target price). If faced, it would be a -5.66% drop from its current position. Overall, the share price is down -30.72% year to date.