Pentair is a pure play water industrial manufacturing company comprised of two segments: Consumer Solutions, which designs, manufactures and sells energy-efficient residential and commercial pool equipment and accessories, and commercial and residential water treatment products and systems; and Industrial and Flow Technologies, which manufactures and sells a variety of fluid treatment and pump products and systems, including pressure vessels, gas recovery solutions, membrane bioreactors, wastewater reuse systems and advanced membrane filtration, separation systems, water disposal pumps, water supply pumps, fluid transfer pumps, turbine pumps and agricultural spray nozzles.
When researching a stock like Pentair, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from PNR Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for PNR stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the PNR 200 day moving average ("PNR 200 DMA"), while one of the most popular "shorter look-backs" is the PNR 50 day moving average ("PNR 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Pentair. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the PNR 200 DMA and the PNR 50 DMA, we get a moving average convergence divergence indicator ("PNR MACD"). The PNR MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis