Should You Invest In Valley National Bancorp ($VLYPO) Or Home BancShares, Inc. ($HOMB)?

2019-08-20 | Welcome! Today we compared how two different stocks in the Major Banks industry are trading: Valley National Bancorp and Home BancShares, 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, Valley National Bancorp opened at 25.83, got to a maximum price of 25.92 and dropped to as low as 25.61 before finishing the session at 25.72. In total there were 2700 shares traded, which is enough to conduct our analysis. Compare that now to Home BancShares, Inc., which opened at 18.36, had a high of 18.42, a low of 18.18, closed at 18.19 and had a total volume of 321000.

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 Valley National Bancorp Home BancShares, Inc.
Accumulation-distribution index 203.82395 149.002
on-balance volume 25.77 -18.06
chaikin money flow

5.88889 7.0
force index

0.0308 0.55487
ease of movement rating

0.0 0.0155
volume-price trend

0.18633 -0.30026
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 Valley National Bancorp Home BancShares, Inc.
Average true range 0.12129 0.26294
Bolinger bands 25.74399 18.77424
Upper bollinger band 25.54601 16.93576
Lower bollinger band

25.61 18.18
Bollinger high band indicator

1.0 1.0
Bollinger high low indicator

1.0 1.0
Central keltner channel

25.78667 18.32
High band keltner channel

25.69667 18.26
Low band keltner channel

25.87667 18.38
High band keltner channel indicator

1.0 1.0
Low band keltner channel indicator

1.0 1.0
Donchain channel high band

25.61 18.18
Donchain channel low band

25.61 18.18
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 Valley National Bancorp Home BancShares, Inc.
Moving Average Convergence Divergence (MACD) trend_macd -0.01458
MACD signal 0.00087 -0.0081
MACD difference 0.0007 -0.00648
fast Exponential Moving Average (EMA) indicator

25.61 18.18
slow Exponential Moving Average (EMA) indicator

25.61 18.18
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

0.20811 0.1341

0.17532 -1.27981
Mass Index (MI)

1.0 1.0
Commodity Channel Index (CCI)

66.66667 -66.66667
Detrended Price Oscillator (DPO)

-0.18857 0.29322
KST Oscillator (KST)

7.41768 -15.87276
KST Oscillator (KST Signal)

7.41768 -15.87276
KST difference

0.6884 -8.79652
Ichimoku rating

25.875 18.39
Ichimoku B rating

25.875 18.39
Ichimoku visual trend A

25.69377 18.78225
Ichimoku visual trend B

25.82086 18.70405
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 Valley National Bancorp Home BancShares, Inc.
Relative Strength Index (RSI) 50.0 50.0
Money Flow Index (MFI) 100.0 24.45273
True Strength Index (TSI) 100.0 -100.0
ultimate oscillator

46.15339 -450.94981
stochastic oscillator

344.44444 400.0
stochastic oscillator signal

344.44444 400.0
Williams %R rating

244.44444 300.0
awesome oscillator

0.01415 -0.07283

RETURNS: That’s all for technical analysis. Now let’s just list the returns for Valley National Bancorp and Home BancShares, Inc..

Daily return 0.74177 -1.58728
Daily log return 0.27296 -3.64084
Cumulative return 0.27333 -3.57536

So there you have it: our deep, grueling analysis comparing Valley National Bancorp and Home BancShares, 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 Valley National Bancorp:

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 VLYPO is strong or weak. Again – this is not a reliable indication of whether Valley National Bancorp 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 Home BancShares, 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 Ivenchuck

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