Should I Buy CSTE? CSTE 2026 Analysis

Should You Buy Caesarstone Ltd (CSTE) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

2.330

1 Day change

1.30%

52 Week Range

4.490

Analysis Updated At

2026/02/04

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Not a good buy right now for an impatient entry: there is no Intellectia buy signal, options activity is illiquid, and pattern-based odds point to ~-10.87% over the next month.
Technicals are mildly bullish (MA stack), but momentum is not accelerating (MACD histogram positive but contracting) and upside is capped near 2.52–2.65 resistance.
With earnings on 2026-02-11 (pre-market) and no supportive news flow, the near-term setup is more event-risk than clean upside.
Intellectia Proprietary Trading Signals
- AI Stock Picker: no signal on given stock today.
- SwingMax: No signal on given stock recently.

Technical Analysis

Trend: Bullish MA alignment (SMA_5 > SMA_20 > SMA_200) suggests an established short-to-long uptrend.
Momentum: MACD histogram = 0.00214 (above 0) but positively contracting → bullish bias, weakening momentum.
RSI: RSI_6 = 60.318 (neutral-to-slightly bullish), not overbought.
Key levels: Pivot 2.308 (price ~2.32 slightly above pivot). Support 2.098 (S1) then 1.969 (S2). Resistance 2.517 (R1) then 2.647 (R2).
Quant/pattern read: Similar candlestick pattern implies +0.27% next day, -0.18% next week, -10.87% next month (tilts against chasing now).

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Positioning: Put/Call OI ratio = 0.01 (calls dominate open interest: calls 2199 vs puts 32) → bullish/skewed positioning.
Activity: Today’s option volume = 0 (and call/put volume both 0) → sentiment signals are not reliable due to illiquidity.
Volatility: IV30 = 179.54% vs HV = 79.88% (very high implied volatility premium); IV has fallen vs 5D/10D avg (347/390) → volatility is compressing after being extreme.
Note: Today vs open interest avg 30D = 139.26 and today OI 2231 suggests positioning exists, but lack of volume limits real-time read-through.

Technical Summary

Sell

Buy

Positive Catalysts

- Hedge fund flow: Hedge Funds are Buying; buying amount +192.30% QoQ (supportive sponsorship signal).
- Technical structure remains constructive with bullish moving averages; a clean break above 2.517 could open room toward 2.647.
- Earnings (2026-02-11 pre-market) can act as an upside catalyst if margins/revenue stabilize or guidance improves.

Neutral/Negative Catalysts

- Upcoming earnings on 2026-02-11 (pre-market) adds near-term binary risk, especially with high implied volatility.
- Weak fundamental trend: Revenue -5.13% YoY and gross margin down to 17.27% (-13% YoY).
- Pattern-based outlook flags elevated downside risk over the next month (~ -10.87%).
- Options are illiquid (0 volume today), reducing confidence in options-derived sentiment.
- No supportive news in the last week (no fresh narrative/catalyst to drive immediate re-rating).

Financial Performance

Latest reported quarter: 2025/Q3.
Revenue: $102.112M, down -5.13% YoY (top-line contraction).
Profitability: Net income - $18.097M, improved +328.64% YoY (loss narrowing materially).
EPS: -0.52, improved +333.33% YoY (still negative, but trending better).
Margins: Gross margin 17.27%, down -13.00% YoY (pressure remains the key issue despite EPS improvement).

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

No analyst rating changes or price target updates were provided in the data (cannot confirm a current Wall Street consensus trend).
Wall Street-style pros view (based on provided data): improving losses/EPS trajectory, hedge-fund accumulation, and a bullish MA trend.
Wall Street-style cons view: continued revenue decline, margin compression, very high implied volatility into earnings, and weak pattern-based 1-month odds.

Analyst Rating

Wall Street analysts forecast CSTE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CSTE is 0 USD with a low forecast of 0 USD and a high forecast of 0 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

Buy