Atlas Corp. ATCO Stock Analysis

Atlas Corp. stock trades under the ticker ATCO & has shown recent bullishness that traders & investors should take a closer look into during this volatile market period.

ATCO stock closed at $15.17/share on 3/10/2022.

Atlas Corp. ATCO Stock’s Technicals Broken Down

ATCO Stock Price: $15.17

10 Day Moving Average: $14.53

50 Day Moving Average: $14.63

200 Day Moving Average: $14.09

RSI: 56.6

MACD: -0.036

Yesterday, ATCO stock completed a bullish MACD crossover, a day after breaking out bullishly above its 10 & 50 day moving averages.

They have traded on above average volume the last few days compared to the year prior.

With 0.6% difference between their 10 & 50 Day Moving Averages, they look to have more momentum to come in the near-term.

I’ll be watching them around the $15.40-level, as if they break through that their next level of resistance is $15.60 & $15.80.

Atlas Corp. ATCO Stock As A Long-Term Investment

Long-term oriented investors will find ATCO stock’s valuation metrics appealing, with a P/E (ttm) of 24.23 & a P/B (mrq) of 1.05.

Their most recent reports had 18.1% Quarterly Earnings Growth Y-o-Y.

ATCO stock’s balance sheet may require a closer examination, with $288.6M in Total Cash (mrq) & Total Debt (mrq) of $6.37B.

They offer a dividend yield of 3.38%, which may not be sustainable in the long-run, as their payout ratio is currently 83.33%.

Despite this, 58% of ATCO’s total outstanding share float is held by institutional investors.

Atlas Corp. ATCO Stock As A Short-Term Trade Using Options

Short-term oriented traders can use options to profit from ATCO stock’s movements in either direction, which is especially beneficial in a volatile market.

I am looking at the contracts that expire next Friday, 3/18.

The $12.50 & $15 call options look appealing, with the latter being more liquid than the former.

The $17.50 calls have solid open interest levels, but require a 15% price increase in the next week to be at-the-money.

From the puts perspective, the $17.50 strike price contracts look appealing, although the out-pf-the-money $15 puts have more open interest.

Tying It All Together

Atlas Corp. stock is worth taking a closer look into, whether you trade for the short-term or are focused on a longer-term investment.

Investors will like their valuation metrics & their dividend yield, but may not be fond of their payout ratio & balance sheet.

Short-term traders will like their current momentum, but may find their open interest levels disappointing.

Overall, it is worth taking a closer look into ATCO stock.

*** I DO NOT OWN SHARES OF ATCO STOCK ***