Fundamental Analysis of Direxion Daily Semiconductor Bull 3X Shares (SOXL:NYE) is Slightly Bullish

STA Research
by: STA Research
SOXL Stock

Stock Target Advisor’s own stock analysis of SOXL stock forecast is Slightly Bullish , which is based on 3 positive signals and 2 negative signals. At the last closing, Direxion Daily Semiconductor Bull 3X Shares’s stock price was USD 11.40Direxion Daily Semiconductor Bull 3X Shares’s stock price has changed by -1.06% over the past week, -7.77% over the past month and -75.36% over the last year.

 

About Direxion Daily Semiconductor Bull 3X Shares (SOXL:NYE):

The fund invests at least 80% of its net assets (plus borrowing for investment purposes) in financial instruments, such as swap agreements, securities of the index, and ETFs that track the index and other financial instruments that provide daily leveraged exposure to the index or to ETFs that track the index. The index is a rules-based, modified float-adjusted market capitalization-weighted index that tracks the performance of the thirty largest U.S. listed semiconductor companies. The fund is non-diversified.

 

What we like:

High market capitalization:

SOXL stock is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk adjusted returns:

SOXL stock has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

High dividend returns:

SOXL stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis, for investors seeking high income yields.

 

What we don’t like:

High volatility:

The total returns for SOXL stock are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns:

SOXL Holdings has under-performed its peers on annual average total returns in the past 5 years.

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