YNDX Rally Isn't Losing Steam Any Time Soon

The stock has more than doubled in the past nine months

Deputy Editor
Jan 4, 2021 at 3:50 PM
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Russian tech name Yandex NV (NASDAQ:YNDX) had quite the year in 2020. The security roared up the charts following its mid-March dip, quickly surmounting even its pre-pandemic levels to peak just below the $70 region in September. And while the equity saw a brief pullback later later in the fall, its 110-day moving average acted as a springboard, launching YNDX to a Dec. 17 record high of $72.40. Shares have slipped back below these levels in recent weeks, last seen up 0.3% at $69.64, but a bullish signal could indicate even more upside for Yandex stock in the coming weeks.

According to data from Schaeffer's Senior Quantitative Analyst Rocky White, YNDX's recent highs come amid historically low implied volatility. This combination has boded well for the security in the past -- there have been four other instances in the past five years when it was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) stood in the 20th percentile of its 12-month range or lower. This is certainly the case now, as YNDX sports an SVI of 35.6%, which is higher than just 10.7% of readings from the past year. 

YNDX Jan 4

A closer look at White's study shows that, after each of these bullish signals, YNDX was higher one month later, averaging a return of 6.1%. This could mean brand new all-time highs for the equity, as a move of similar magnitude would put it just atop the $74 mark. 

The equity is overdue for a round of upgrades and/or price-target hikes, too, especially considering Yandex stock's 105.9% nine-month lead. Currently, the 12-month consensus price target of $67.82 represents a 2.8 discount to current levels, while three of five analysts in coverage consider YNDX a "hold." 

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