You Can Profit from the Data Center Building Boom with This Hot Stock

• Twin Disc (TWIN) demonstrates strong technical momentum, recently hitting a new 5-year high.
• Shares are up nearly 95% over the past year.
• TWIN stock maintains a 100% “Buy” rating from Barchart.
• However, analyst sentiment is mixed, with some warning the stock is “overvalued” or rating it a “Hold.”

Today’s Featured Stock

Valued at $390 million, Twin Disc (TWIN) designs, manufactures, and sells heavy duty off-highway power transmission equipment. Products offered include hydraulic torque converters, power-shift transmissions, marine transmissions and surface drives, universal joints, gas turbine starting drives, power take-offs and reduction gears, industrial clutches, fluid couplings, and control systems. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals and superior current momentum. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. TWIN checks those boxes. The Trend Seeker issued a new “Buy” signal on Sept. 15. The stock has gained 9.49% since that signal.

Barchart’s Technical Indicators for Twin Disc

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Twin Disc hit a 5-year high of $27.31 on Oct. 2.

• Twin Disc has a Weighted Alpha of 103.25.
• TWIN has a 100% “Buy” opinion from Barchart.
• The stock has gained 94.36% over the past 52 weeks.
• Twin Disc has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $27.31 with a 50-day moving average of $24.27.
• TWIN had 14 highs and gained 19.8% in the last month.
• 60-month beta of 0.67.
• Relative Strength Index (RSI) is at 73.70.
• There’s a technical support level around $25.76.

Don’t Forget the Fundamentals

• $390 million market capitalization.
• 30.11x trailing price-earnings ratio.
• Dividend yield of 0.73%.
• Revenue is estimated to grow 7.56% this year and another 8.00% next year.

Analyst and Investor Sentiment on Twin Disc

• Wall Street analysts followed by Barchart give the stock 2 “Strong Buy” opinions with price targets from $24 to $30.
• Value Line rates the stock “Above Average.”
• Morningstar thinks the stock is 7% overvalued.
• CFRA’s MarketScope rates the stock as “Hold.”
• 1,470 investors are following the stock on Seeking Alpha which rates it as a “Hold.”
• TipRanks analysts have a consensus of $30.
• Short interest is 3.34% of the float with 3.92 days to cover the float.

The Bottom Line on Twin Disc

To me, it sounds from the company’s description above that Twin Disc could be a big help in constructing the data center boom. Take a read too and decide for yourself. 

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio, it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance. 

On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.