New Analysis: Virtusa Corporation ($VRTU) vs CarGurus, Inc. ($CARG)

2019-08-20 | Welcome! Today we compared how two different stocks in the EDP Services industry are trading: Virtusa Corporation and CarGurus, Inc.. While these two companies may have very different market capitalizations and balance sheets, they are worth comparing given how they are in the same sector. Below you’ll see how the different technical indicators differ between these two stocks, and we’ll also show what Trading View thinks of them based on the technical analysis. But before we get ahead of ourselves, please note that this is technical analysis only (ie. analyzing how these companies are trading, not digging into the company fundamentals), and therefore you should not rely only on this to guide you on whether you should buy or sell anything – take it with a grain of salt only, and pay attention to the disclaimer below. With that said, many traders find value in technical analysis and others even swear by it, so if that is you, I hope my analysis will be of use to you. Let’s get to it…

First things first: during its last day of trading, Virtusa Corporation opened at 35.24, got to a maximum price of 35.69 and dropped to as low as 34.73 before finishing the session at 35.2. In total there were 199700 shares traded, which is enough to conduct our analysis. Compare that now to CarGurus, Inc., which opened at 31.74, had a high of 32.285, a low of 30.91, closed at 32.11 and had a total volume of 1001500.

VOLUME ANALYSIS: Generally, the higher the volume indicators are, the better – you need liquidity to trade, after all. All of the volume indicators are as follows… (click here for an explanation on volume)

Volume Indicator Virtusa Corporation CarGurus, Inc.
Accumulation-distribution index 170.6416 207.01999
on-balance volume -34.62 31.21
chaikin money flow

3.26667 4.04587
force index

2.6741 0.4692
ease of movement rating

0.02031 0.00635
volume-price trend

-8.40765 -4.60163
negative volume index

1000.0 1000.0

VOLATILITY ANALYSIS: Now to compare the volatility between these two companies… (click here for an explanation on volatility)

Volatility Indicator Virtusa Corporation CarGurus, Inc.
Average true range 1.04698 0.92234
Bolinger bands 35.45223 31.10142
Upper bollinger band 33.21777 30.81858
Lower bollinger band

34.73 30.91
Bollinger high band indicator

1.0 1.0
Bollinger high low indicator

1.0 1.0
Central keltner channel

35.22 31.645
High band keltner channel

34.77 31.1
Low band keltner channel

35.67 32.19
High band keltner channel indicator

1.0 1.0
Low band keltner channel indicator

1.0 1.0
Donchain channel high band

34.73 30.91
Donchain channel low band

34.73 30.91
Donchain channel high band indicator

1.0 1.0
Donchain channel low band indicator

1.0 1.0

TREND ANALYSIS: Now for the most interesting and detailed part, the trend. Where is the stock actually going? Let’s compare the indicators… (click here for an explanation on trend)

Trend Indicator Virtusa Corporation CarGurus, Inc.
Moving Average Convergence Divergence (MACD) trend_macd 0.00224
MACD signal -0.00985 0.00125
MACD difference -0.00788 0.001
fast Exponential Moving Average (EMA) indicator

34.73 30.91
slow Exponential Moving Average (EMA) indicator

34.73 30.91
Average Directional Movement Index (ADX)

unknown unknown
ADX positive

20.0 20.0
ADX negative

20.0 20.0
positive Vortex Indicator (VI)

1.0 1.0
negative VI

1.0 1.0
trend vortex difference

0.22831 0.3666
trix

-17.82925 -10.84052
Mass Index (MI)

1.0 1.0
Commodity Channel Index (CCI)

-66.66667 -66.66667
Detrended Price Oscillator (DPO)

11.17142 5.23086
KST Oscillator (KST)

-243.37853 -144.73528
KST Oscillator (KST Signal)

-243.37853 -144.73528
KST difference

-4.3027 0.69174
Ichimoku rating

35.465 32.0125
Ichimoku B rating

35.465 32.0125
Ichimoku visual trend A

45.35579 36.6395
Ichimoku visual trend B

42.72279 35.67982
Aroon Indicator (AI)

4.0 4.0
AI indicator down

4.0 4.0
AI difference

-4.0 4.0

MOMENTUM ANALYSIS: What about momentum? Let’s dive into it… (click here for an explanation on momentum)

Momentum Indicator Virtusa Corporation CarGurus, Inc.
Relative Strength Index (RSI) 50.0 50.0
Money Flow Index (MFI) 19.36084 49.00737
True Strength Index (TSI) -100.0 -100.0
ultimate oscillator

-9.40124 -35.66004
stochastic oscillator

213.33333 252.29358
stochastic oscillator signal

213.33333 252.29358
Williams %R rating

113.33333 152.29358
awesome oscillator

-0.27472 -0.03358

RETURNS: That’s all for technical analysis. Now let’s just list the returns for Virtusa Corporation and CarGurus, Inc..

Daily return -24.33785 -14.47353
Daily log return -2.30096 0.323
Cumulative return -2.27469 0.32352

So there you have it: our deep, grueling analysis comparing Virtusa Corporation and CarGurus, Inc. together. But what does all of the above mean? Various technical indicators above are positive, while others are negative, and if we want to decide overall if the technical analysis indicates a bullish or bearish chart, we have to consider all of them together. That’s what the Trading View widget below can do, so let’s see what it says considering all these indicators. First, here’s Virtusa Corporation:

The verdict above will consider all these technical indicators and consider which are strong and weak, and then put them all together to come up with a conclusion stating whether VRTU is strong or weak. Again – this is not a reliable indication of whether Virtusa Corporation is a good investment! None of these indicators consider the company fundamentals. All of this data is based on how it trades only. Now with that out of the way, let’s compare it with CarGurus, Inc.

So there you have it. We hope you have found this analysis useful, and if you see any errors or have any feedback, please comment below.

How can you profit off trading these 2 companies and other stocks like it? First, check out the Beat The Market Analyzer software – this is worth its weight in gold. Some other great services for earning income from trading and investing are Dividend Stocks (an outstanding resource for anyone interested in high dividend paying stocks), Microcap Millionaires (the best site online for profiting off micro-cap stocks) and Trading Code (an extremely powerful system for profiting off trading).

DISCLAIMER: We are not registered investment advisers and the above analysis should be taken at face value only. We strongly advise against buying or selling anything based solely on our analysis above, and are not responsible for any losses that you may incur if you choose make any investment decisions based on the above.

Gary Ivenchuck

Gary is a stock trading expert and is responsible for covering technical analysis news on Logistics Business Review. Recently he has been working tirelessly to analyse stocks for our readers, and is always available to hear from people asking for stock analysis.

gary@logistics-business-review.com
Gary Ivenchuck

Leave a Reply

Your email address will not be published. Required fields are marked *