Analyst Target Price & Stock Review on Cubic Corporation (NYSE:CUB)

Wall street brokerage firm analysts are offering a consensus “Buy” rating on shares of Cubic Corporation (NYSE:CUB).  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 1.60 on the shares.  Based on a recent trade, the shares are hovering around $72.59 which, according to analysts, yield significant upside potential to the $77.00 consensus target price.

Investors are constantly on the lookout for that next great stock pick. Finding that particular stock that had been overlooked by the rest of the investing community can bring great satisfaction to the individual investor. Spotting these stocks may take a lot of time and effort, but the rewards may be well worth it. Knowledge is power, and this principle also translates over to the equity market. Investors who are able to dig a little bit deeper may be setting themselves up for much greater success in the long run. These days, investors have access to a wide range of information. Trying to filter out the important information can be a key factor in portfolio strength. Knowing what data to look for and how to trade that information is extremely important. Successful investors are typically able to focus their energy on the right information and then apply it to a trading strategy.    
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.

Analyst recommendations should be approached with caution for many reasons.  Many times a conflict of interest arises due to the relationship between company that they work for and the company whose stock they are paid to track. 

Often, analysts are responsible for creating reports on companies that are currently or could potentially be a client of their employer.  Analysts don’t want to offend any companies that could possibly be a potential client down the road, so they are inclined to put a positive spin on the stock. 

Beyond issuing buy, sell, or hold recommendations, analysts also create earnings estimates.  These are earnings per share (EPS) numbers that analysts believe a particular company will report on its next statement.  These estimates have been growing in importance on Wall Street over the years, because the companies that “beat” their estimates usually see their stock prices grow while those who don’t usually watch them shrink.

RSI 

Cubic Corporation (NYSE:CUB)’s shares may have a significant upside to the consensus target of 77.00, but how has it been performing relative to the market?  The stock’s price is 72.59 and their relative strength index (RSI) stands at 62.38.  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.  

Cubic Corporation (NYSE:CUB) shares are moving -0.56% trading at $72.59 today.

Investors are constantly on the lookout for that next great stock pick. Finding that particular stock that had been overlooked by the rest of the investing community can bring great satisfaction to the individual investor. Spotting these stocks may take a lot of time and effort, but the rewards may be well worth it. Knowledge is power, and this principle also translates over to the equity market. Investors who are able to dig a little bit deeper may be setting themselves up for much greater success in the long run. These days, investors have access to a wide range of information. Trying to filter out the important information can be a key factor in portfolio strength. Knowing what data to look for and how to trade that information is extremely important. Successful investors are typically able to focus their energy on the right information and then apply it to a trading strategy. 

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