Oddity Tech's ROCE Trend Leaves Investors Uncertain of Future Returns.

Oddity Tech's (NASDAQ:ODD) return on capital employed (ROCE) has dropped from 25% to 13% over the past four years, despite increased capital employed and revenue. While the ROCE is around the industry average of 11%, the trend does not inspire confidence. However, the company has successfully paid down its current liabilities, which reduces some elements of risk and could benefit the business in the long run.

Oddity Tech's (NASDAQ: ODD) return on capital employed (ROCE) has decreased from 25% to 13% over the past four years, despite a significant increase in capital employed and revenue. While the company's ROCE is now around the industry average of 11%, the declining trend raises concerns among investors. However, Oddity Tech has successfully reduced its current liabilities, which could mitigate some risks and potentially benefit the business in the long run.

On August 20, 2025, at 14:30, ODDITY Tech's 15-minute chart exhibited a MACD Death Cross and Bollinger Bands Narrowing, suggesting potential downward movement and reduced volatility in the stock price [1]. This development follows a significant upgrade in the company's IBD SmartSelect Composite Rating from 94 to 96 on August 14, 2025, indicating strong performance relative to other stocks. The MACD Death Cross, a bearish signal, occurs when the MACD line crosses below the signal line, suggesting a potential reversal in the stock's upward trend [1]. Additionally, the narrowing of Bollinger Bands indicates a decrease in the magnitude of stock price fluctuations, which is more commonly associated with a continuation of the current downward trend rather than a potential breakout in either direction [2].

Oddity Tech's recent earnings report, released on August 4, 2025, showed strong performance with earnings of $0.92 per share, exceeding expectations and marking a year-over-year revenue increase of 25.1%. However, the company's stock has experienced a 95.5% reduction in Bank of New York Mellon Corp's stake, with the firm selling 118,043 shares, leaving them with only 5,572 shares valued at $241,000 [3].

Investors should closely monitor these developments, as they may indicate a change in ODDITY Tech's stock price trajectory. While the company's recent performance has been robust, these technical indicators suggest a potential slowdown or reversal in the near term. For a more comprehensive analysis, investors should consider the broader market context and other fundamental indicators.

References:
[1] https://www.ainvest.com/news/oddity-tech-15min-chart-triggers-macd-death-cross-bollinger-bands-narrowing-2508/
[2] https://www.ainvest.com/news/oddity-tech-15min-chart-triggers-macd-death-cross-kdj-death-cross-2508/
[3] https://www.marketbeat.com/instant-alerts/filing-bank-of-new-york-mellon-corp-sells-118043-shares-of-oddity-tech-ltd-nasdaqodd-2025-08-06/