Is Now the Time to Buy Nanometrics Incorporated (NASDAQ:NANO)? Analyst’s Take

Wall street brokerage firm analysts are offering a consensus “Buy” rating on shares of Nanometrics Incorporated (NASDAQ:NANO).  Using the following ratings scale: 1.0 Strong Buy, 2.0 Buy, 3.0 Hold, 4.0 Sell and 5.0 Strong Sell, analysts have an average recommendation of 2.30 on the shares.  Based on a recent trade, the shares are hovering around $30.88 which, according to analysts, yield significant upside potential to the $37.67 consensus target price.

One of the most famous sayings in the stock market is “buy low, sell high”. This may seem like an oversimplified statement, but there are many novice investors who often do the complete opposite. Many investors may be looking too closely at stocks that have been on the rise, and they might not be checking on the underlying fundamental data. They may be hoping to ride the wave higher, but may end up shaking their heads. On the flip side, many investors may hold onto stocks for far too long after they have slipped drastically. Waiting for a bounce that may never come can cause frustration and plenty of second guessing. Successful investors are typically able to locate stocks that are undervalued at a certain price. This may take a lot of practice and dedication, but it may do wonders for the health of the portfolio.

Wall Street firms hire hundreds of analysts who provide recommendations on stocks.  Typically, these analysts look at a company’s fundamentals, building financial models from this information in order to project future trends, specifically future earnings.  These projections are then used as a basis for providing “buy” or “sell” recommendations.  Many investors consider these recommendations very seriously, and often times whenever an analyst changes their outlook on a stock, the price change almost immediately.

RSI 

Nanometrics Incorporated (NASDAQ:NANO)’s shares may have a significant upside to the consensus target of 37.67, but how has it been performing relative to the market?  The stock’s price is 30.88 and their relative strength index (RSI) stands at 44.73.  RSI is a technical oscillator that shows price strength by comparing upward and downward movements.  It indicates oversold and overbought price levels for a stock.  

When looking at technical analysis, one of the leading concepts is that of the trend. Chartists are constantly looking to identify trends to help determine which way a stock price is moving. Trends may not always be easy to spot, but they can be highly useful when identified. When looking at the stock market, an example of an upward trend is generally classified as a stock price that over time keeps reaching higher highs and higher lows. On the flip side, a downward trend is usually identified by spotting a stock that has been hitting lower lows and lower highs. Defining trends may take the novice trader some time to figure out, but learning how to properly study charts may help bring in steady profits in the future.

Nanometrics Incorporated (NASDAQ:NANO) shares are moving -4.25% trading at $30.88 today.

Investors have the ability to approach the stock market from various angles. This may include using technical analysis, fundamental analysis, or a combination or the two. Investors watching the technical levels may be trying to chart patterns and discover trends in stock price movement. Investors tracking the fundamentals may be looking closely at many different factors. They may be focused on industry performance, earnings estimates, dividend payouts, and other factors. They might also be studying how the company is run, and trying to figure out the true value of the firm. Keeping track of all the data may seem overwhelming, but it may help give a needed boost to the portfolio.