American Axle & Manu
AXL
Delayed Nyse - 11/17 10:02:40 pm
17.99USD
+1.75%

A medium term support level to take advantage of

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David Meurisse
Contributor / Partner

Strategy published on : 05/19/2017 | 15:18

long trade
Stop-loss triggered

Entry price : 15.81$
Target : 16.68$
Stop-loss : 15.37$
Potential : 5.5%

The recent downturn has taken American Axle & Manufact. Holdings, Inc. shares close to a medium term support level around 15.37 USD. The timing for a long trade in the stock appears good.
Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● In a short-term perspective, the company has interesting fundamentals.


Strengths

● Graphically speaking, the timing seems perfect for purchasing the stock close to the USD 15.37 support.

● Growth progress expectations are rather promising. Indeed, sales are expected to rise sharply in the coming years.

● The company shows low valuation levels, with an enterprise value at 0.35 times its sales.

● Its low valuation, with P/E ratio at 4.93 and 4.52 for the ongoing fiscal year and 2018 respectively, makes the stock pretty attractive with regard to earnings multiples.

● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.

● Over the last twelve months, the sales forecast has been frequently revised upwards.

● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.

● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.


Weaknesses

● The group usually releases earnings worse than estimated.

Zonebourse.com 2017
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