This Underrated Bank Stock Is Quietly Soaring

• Axos Financial (AX) is approaching its 52-week highs and has strong technical momentum.
• Shares are up 48% over the past year.
• AX has a Trend Seeker “Buy” signal and an 88% overall “Buy” rating via Barchart.
• Analysts project earnings and revenue growth, and Axos has solid fundamentals. 

Today’s Featured Stock:

Valued at $4.7 billion, Axos Financial (AX) is the holding company for Axos Bank, which provides financing for single and multifamily residential properties, small and medium businesses in target sectors, and selected specialty finance receivables. Axos Bank provides consumer and business banking products.  

What I’m Watching:

I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. AX checks those boxes. Since the Trend Seeker signaled a buy on May 2, the stock has gained 23.2%.

AX Price vs. Daily Moving Averages:

Barchart Technical Indicators for Axos Financial:

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Axos shares hit a new year-to-date high on July 7, touching $84.65 in intraday trading. However, shares remain just off their 52-week high of $88.46 set in November 2024. 

• Axos has an 88% technical “Buy” signal.
• The stock recently traded at $83.20, above its 50-day moving average of $71.68.
• AX has a Weighted Alpha of +38.85.
• The stock has gained 48.3% over the past year.
• AX has its Trend Seeker “Buy” signal intact.
• Axos is trading above its 20, 50 and 100-day moving averages.
• The stock has made 11 new highs and gained 17.3% in the last month.
• Relative Strength Index is at 76.46%.
• The technical support level is $82.09.

Don’t Forget the Fundamentals:

• $4.7 billion market cap.
• Trailing price-earnings ratio of 11.3x.
• Revenue is projected to grow 5.55% this year and 4.52% next year.
• Earnings are estimated to increase 9.64% this year and increase 3.14% next year.

Analyst and Investor Sentiment on Axos:

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like Wall Street analysts have very mixed feelings and some major advisory sites think the stock may be priced too high for further price appreciation.

• The Wall Street analysts tracked by Barchart issued three “Strong Buy,” two “Moderate Buy,” and one “Hold” opinion on the stock.
• Value Line gives the stock its above-average rating.
• CFRA’s MarketScope rates the stock a “Hold.”
• MorningStar thinks the stock is 10% overvalued.
• 14,460 investors monitor the stock on Seeking Alpha, which rates the stock a “Strong Buy.”

The Bottom Line:

Axos currently has momentum and is hitting new highs.

I caution that AX is volatile and speculative — use strict risk management and stop-loss strategies.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.