According to the 15-minute chart for Timken, the RSI has reached an overbought level and a KDJ Death Cross occurred on September 4, 2025 at 12:30. This suggests that the stock price has risen excessively and is no longer supported by its fundamental value, indicating a shift in momentum towards a downward trajectory and potential further decreases.
The 15-minute chart for Timken (NYSE: TKR) has shown signs of overbought conditions, with the Relative Strength Index (RSI) reaching an overbought level. Additionally, a KDJ Death Cross occurred on September 4, 2025, at 12:30, signaling a potential shift in momentum and indicating a downward trajectory for the stock price. These technical indicators suggest that the stock price has risen excessively and is no longer supported by its fundamental value.
According to Simply Wall St [2], Timken's share price has underperformed the market over the past five years, with a 40% rise compared to the market's 17% gain. The stock has even lost 8.6% in the last year. While the company has managed to grow its earnings per share (EPS) at 0.9% annually over the past five years, this growth is lower than the 7% average annual increase in the share price, suggesting that the market has a higher opinion of the business than it did five years ago.
The Total Shareholder Return (TSR) for Timken over the last five years was 52%, largely due to its dividend payments. However, the share price return was only 40%, indicating that the stock has not kept pace with the market's performance.
The recent sell-off in Timken's stock price may present an opportunity for long-term investors, as the stock has shown a long-term growth trend. However, investors should be cautious and monitor the company's fundamental data for signs of a long-term growth trend. Additionally, Timken faces two warning signs that investors should be aware of [2].
In conclusion, while Timken's stock price has shown signs of overbought conditions and a potential downward trajectory, long-term investors may find it interesting to monitor the company's fundamentals for signs of a long-term growth trend. However, investors should remain cautious and consider the company's warning signs before making investment decisions.
References:
[1] https://www.ainvest.com/news/timkens-nyse-tkr-investors-pleased-131939419.html
[2] https://simplywall.st/stocks/us/capital-goods/nyse-tkr/the-timken-company-nyse-tkr-2025
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