Buy signal on weekly chart for $MSGEMadison Square Gardens Entertainment has upcoming earnings on August 19th. With the data provided by AXP travel & entertainment spending are up as spending has shifted from goods to experiences, entertainment, and services. This is exemplified in what retailers are reporting. And I think this will be positive for MSGE.
Currently, the middle and upper classes are doing fairly well while the lower class is suffering from the regressive tax of inflation, which is unfortunate. Those with disposable income and better economic situations are more likely to be MSGE customers boding for a good quarter and less risk from demand destruction.
MSGE is trading above its 52-week lows at 0.5629 its book value, providing tremendous value and a good risk-reward ratio. Its EBITDA and EBIT have gone from negative previously to positive in the past two quarters. Gross profit has turned positive for the past 4 quarters and net income has been improving over the past 3 quarters.
Anytime the K% crosses the D% on the Stoch RSI around the level of 1.73, MSGE goes for a decent rally. If you average the two past rallies (MSGE has a short trading history) from the week the bullish Stoch RSI cross happened to a relative peak, it's a 59.47% move that could be implied over the next 6-12 months. It has significant resistance at the $68.06 level.
It recently broke out through a downtrend line that started in mid-April. It is still in a downtrend, but it seems the prudent thing to do would be to create 1/3 to 1/4 of a full position in the stock now and buy the next tranche upon a higher low or higher high. I have a price target of $81 on it by the end of the year. That's roughly 40% upside from here. The highest PT on the street for MSGE is $100, the lowest is $63, and the average is $82.83.
