World Wrestling Entertainment, Inc. (NYSE:WWE) has returned more than 25% year-to-date. At the current price of $62, the stock has more than doubled in price since the early days of the pandemic. However, we believe diligent investors can make massive returns trading the momentum of WWE.
WWE is an integrated entertainment and media company. It produces and offers creative content on several channels. The content is monetized via licensing arrangements and direct-to-consumer subscriptions, among others. With a return of 25% YTD, WWE can be considered a defensive name in an overheating economy. It is also a momentum stock, offering investors a chance to buy on dips and sell the tops.
WWE has a VGM Score of A and a hold rating on the Zacks Rank. The stock has a momentum style score of B. On Wall Street, out of seven analysts, 2 have a buy rating. Five have a hold rating, with no sell. The average price target is $68.29, compared to the current $62.51. This thesis recommends holding the stock for value preservation. Investors can also capitalize on dips to buy in the short term.
WWE is retreating in a strong bullish momentum
Source – TradingView
Technically, WWE is on a long-term bullish momentum. The stock is retreating after meeting a minor resistance at $67. We believe the stock could fall further to find support at $57. Investors should seek to buy at the support or the 200-MA. The stock will require active management, and investors can exit at the next or previous top.
WWE is a strong momentum stock. The stock has strong returns YTD, making it good for value preservation and profit generation. The stock is retreating, and investors should buy after a further dip.
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