Is Aflac set to surpass analysts’ targets? Find out now! | Don’t ignore this chart!

The boring and the fascinating rarely coexist, except for naysayers who can find subtle charm in what the mainstream finds mundane. But discovering the next “hot” stock often requires looking at assets that the public is underestimating and ignoring.

that I think I will This is the case with Aflac, Inc (AFL). Yes, it’s a duck mascot company.

Why Aflac? Remember when the market plummeted earlier this week? Well, Aflac was one of the few stocks to rally while the broader market tumbled. Moreover, on Thursday it topped several bullish scans as you can see below.

The focus is Stocks hit new 52-week highs, entering new uptrendand Parabolic SAR Buy Signal.

AFL appeared on first scan (new 52-week high), not using StockCharts scanner, you might want to try it. Here you will find many scans that will help you identify attractive stocks that are usually not often mentioned in the financial media. You can also use: Symbol summaryCheck out our other scans which may show your stock as shown in the image above.

Macro view

Chart 1. Weekly chart of AFLAC. There is a clear and quiet upward trend with steady momentum.

After the coronavirus outbreak in 2020, many investors will have been trying to figure out which sectors are best for investment considering the economic uncertainty ahead. Healthcare and technology stocks took center stage, but not many people may have thought about supplementary insurance stocks such as the AFL.

As you can see in the chart above, the AFL’s bullish momentum surged towards the end of 2020, beginning a very steady upward trend that is not stopping. But does that lead to a purchase now?

Please forgive the messy chart.

Chart 2. Daily chart of AFLAC. With improved SCTR scores and consistent buying pressure, the AFL’s upward trend has proven resilient over the past four years.

that much SCTR line At the top it shows that technical conditions in the AFL have been improving over several periods. It won’t cross the 90 mark, but it may get there soon. that much Chaikin Money Flow (CMF) This suggests steady buying pressure to fuel the AFL’s continued rise. The three panels below CMF highlight the extent to which the AFL outperforms the S&P 500 (+14%), financial sector proxy XLF (+8%), and insurance industry $DJUSIL (+7%).

Now take a look at the main price chart itself. The AFL is at an all-time high but is also approaching the upper Bollinger Band. For stocks in this upward trend, there is a high probability of being bullish. Nonetheless, the AFL is likely to fluctuate back into the mid-band.

If you are waiting for the stock to drop, a drop between the middle and lower bands can be a lucrative entry. You can also use Ichimoku Cloud. Identify favorable support areas for entry.

Technically, the AFL looks optimistic. Nonetheless, you will want to evaluate this against the fundamental picture. Based on the dismal and broad market activity last week, we can see that AFL is one of the more “defensive” stocks that are bucking the short-term trend. Over the long term, the AFL has outperformed its own sector and the wider market since 2022, as seen in the StockCharts PerfChart. Under.

Chart 3. Charts of the AFL, S&P 500 and financial sector over the last four and a half years. The AFL is starting to outperform the wider markets and financial sector in 2022.

But Wall Street analysts’ top target for 2024 is $95 per share. Historically, stocks meet or exceed analysts’ top targets only 35% of the time. Can the AFL do either of those things this time?

Closing Thoughts

Aflac, famous for its duck mascot, has shown strong resilience and steady growth. This was especially noticeable during last week’s market downturn, when prices soared relative to the broader market decline. Despite the optimistic technology, it is important to consider the AFL’s fundamental outlook and wider market conditions when deciding whether to pull the trigger. If you want to accumulate a few stocks, you might consider waiting for a decline. The levels at which you should consider entering a position have been discussed above.

disclaimer: This blog is for educational purposes only and should not be construed as financial advice. You should not use any of our ideas and strategies without first evaluating your personal and financial situation or consulting a financial professional.