(STXE) EA Series Trust - Ratings and Ratios

The EA Series Trust, traded as STXE on NYSE ARCA, is an exchange-traded fund (ETF) that focuses on diversified emerging markets. It is designed to track an index comprising large and mid-capitalization equity securities from 24 emerging market economies, with a notable exclusion of China. This strategic exclusion differentiates it from broader emerging market ETFs, potentially offering a unique risk-return profile for investors seeking exposure to emerging markets outside of China.

The fund maintains a significant allocation to emerging market securities, with at least 80% of its total assets invested in such securities under normal circumstances. This includes not just direct holdings but also depositary receipts like American Depository Receipts (ADRs) and Global Depository Receipts (GDRs), which represent securities included in the tracked index. This investment strategy allows the fund to provide broad exposure to a diverse range of emerging market economies.

From a technical analysis perspective, the current price of STXE is $29.66, indicating a recent upward trend as it is above its SMA20 ($28.47), SMA50 ($27.61), and SMA200 ($28.34). The Average True Range (ATR) of 0.56, or 1.90%, suggests moderate volatility. Given the current price is near the upper end of its 52-week range ($24.93 - $30.75), and considering the upward trend, there might be potential for further growth if the trend continues. However, the proximity to the 52-week high ($30.75) could indicate a potential resistance level.

Fundamentally, the ETF has $91.48 million in Assets Under Management (AUM), indicating a reasonable scale for an ETF in this niche. While the size is not negligible, it is also not among the largest ETFs, suggesting that it might not be as liquid as larger counterparts, potentially impacting trading costs.

Forecasting the future performance of STXE involves considering both technical and fundamental factors. Technically, a break above the 52-week high of $30.75 could signal further upside potential, potentially targeting new highs. Fundamentally, the exclusion of China from its portfolio could be seen as either positive or negative depending on the outlook for other emerging markets versus China. If other emerging markets are expected to outperform China, STXE could be well-positioned. Conversely, if Chinas slowdown is expected to positively impact other emerging markets through trade or other economic mechanisms, STXE might still benefit. Given the current trend and assuming no significant downturn in emerging markets (excluding China), a potential target could be in the range of $31.50 to $32.50, representing a 6% to 9.5% increase from current levels. However, this forecast is contingent on the funds ability to maintain its current investment strategy and on favorable market conditions for the included emerging markets.