Should You Buy Overstock.com’s Stock On Dips?

by Trefis Team
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Overstock.com (NASDAQ: OSTK), an American internet retailer, saw its stock fall by 8.1% to $86 in the last twenty-one trading days. In comparison, the broader S&P500 rose by 2.7% over the last twenty-one trading days. We believe in the long term the stock has upside potential of more than 30% from its current price, and the dip has created a buying opportunity for investors as the consumer shift toward online shopping continues. Now, is OSTK stock poised to grow? Based on our machine learning analysis of trends in the stock price over the last ten years, there is a 56% chance of a near term decline in OSTK stock over the next month (twenty-one trading days). See our analysis on Overstock.com’s Stock Chances Of Rise for more details.

Five Days: OSTK -12%, vs. S&P500 1.4%; Underperformed market

(8% event probability)

  • Overstock.com’s stock declined 12% over a five day trading period ending 7/7/2021, compared to the broader market (S&P500) which rose 1.4%
  • A change of -12% or more over five trading days has a 8% event probability, which has occurred 194 times out of 2516 in the last ten years

Ten Days: OSTK -1%, vs. S&P500 2.5%; Underperformed market

(45% event probability)

  • Overstock.com’s stock declined 1.1% over the last ten trading days (two weeks), compared to the broader market (S&P500) rise of 2.5%
  • A change of -1% or more over ten trading days has a 45% event probability, which has occurred 1144 times out of 2516 in the last ten years

Twenty-One Days: OSTK -8.1%, vs. S&P500 2.7%; Underperformed market

(31% event probability)

  • Overstock.com’s stock declined 8.1% over the last twenty-one trading days (one month), compared to the broader market (S&P500) rise of 2.7%
  • A change of -8.1% or more over twenty-one trading days has a 31% event probability, which has occurred 786 times out of 2516 in the last ten years

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market since 2016.

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