In the first chart of GXP, above, we can see the double bottom made in July and September. Projecting the height of this pattern upward from the breakout point yields us a target of around $30.50.
This chart also shows the improving On-Balance-Volume (OBV) line and the positive position of the moving averages. Prices of GXP are above the 50- and 200-day moving averages, and the 50-day average could soon close above the 200-day average, generating a "golden cross."
In this longer chart of GXP, we can see it is above its rising 40-week (200-day) moving average and that the OBV line has been rising steadily. Both are longer-term positives.
A weekly close above $30 opens up a longer-term price target of $36 for GXP.
Separately, TheStreet Ratings team rates GREAT PLAINS ENERGY INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate GREAT PLAINS ENERGY INC (GXP) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, solid stock price performance and reasonable valuation levels. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Net operating cash flow has significantly increased by 81.57% to $117.30 million when compared to the same quarter last year. In addition, GREAT PLAINS ENERGY INC has also vastly surpassed the industry average cash flow growth rate of 22.14%.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- GXP, with its decline in revenue, slightly underperformed the industry average of 0.8%. Since the same quarter one year prior, revenues slightly dropped by 6.1%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The gross profit margin for GREAT PLAINS ENERGY INC is currently lower than what is desirable, coming in at 33.40%. Regardless of GXP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.29% trails the industry average.
- You can view the full analysis from the report here: GXP