Atlas Corp. stock trades under the ticker ATCO & has shown recent bullish strength that traders & investors should take note of.
ATCO stock closed at $15.40/share on 11/9/2021, with signs showing further gains to come in the near-term.
Atlas Corp. ATCO Stock’s Technicals Broken Down
ATCO Stock Price: $15.40
10 Day Moving Average: $14.16
50 Day Moving Average: $14.81
200 Day Moving Average: $13.76
RSI: 63.4
MACD: -0.075
Yesterday, ATCO stock completed a bullish MACD crossover, while also gapping up ~9%.
In doing so, their share price also broke out above both the 10 & 50 Day Moving Averages.
With their RSI only being slightly overbought, there looks to be more momentum to come in the near-term to push ATCO higher.
The next resistance area they are targeting will be to break above the $15.99/share level.
Atlas Corp. ATCO Stock As A Long-Term Investment
Long-term investors may find ATCO stock’s valuation metrics appealing, with a P/E (ttm) of 23.7 & a P/B of 0.92.
Their Beta is 0.98, meaning that they move more or less in line with the broader markets.
ATCO experienced 17% Quarterly Revenue Growth Y-o-Y.
One area that may be of concern to investors is their balance sheet, where ATCO has Total Cash (mrq) of $257.6M & Total Debt (mrq) of $6.27B.
Atlas Corp.’s stock does offer a 3.54% dividend yield, however that should be viewed with caution as their current payout ratio is high at 86%.
Despite all of this, ATCO has ~71% of all outstanding shares held by institutional investors.
Atlas Corp. ATCO Stock As A Short-Term Trade Using Options
ATCO stock has options that traders can use to take advantage of near-term momentum, while hedging off broader market volatility.
I am looking at the contracts with the 11/19 expiration dates.
The $15 calls are in-the-money & highly liquid, as are the $12.50 calls.
The $17.50 puts look appealing as well, but are not nearly as liquid, signaling that there is more bullish sentiment than bearish for ATCO in the near-term.
Tying It All Together
Overall, there look to be many interesting advantages to Atlas Corp.’s stock.
Investors will like their valuation metrics, and their dividend yield should it prove to be sustainable.
Traders will like their near-term bullish momentum that looks set to continue.
ATCO stock is worth taking a closer look at for traders & investors alike.
*** I DO NOT OWN SHARES OF ATCO STOCK ***