Autohome Inc (ADR)
ATHM
Real-time BATS EXCHANGE - 06/25 09:23:35 pm
107.99USD
-5.75%

The underlying trend is to the upside

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Anas Lozach
Analyst

Strategy published on : 03/13/2018 | 15:21

long trade
Stop-loss triggered

Entry price : 89.63$
Target : 103.6$
Stop-loss : 82.55$
Potential : 15.59%

Shares in Autohome Inc (ADR) show a positive technical chart pattern over the medium term. The timing to jump back on the rising trend seems good.
Investors have an opportunity to buy the stock and target the $ 103.6.

Summary

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


Strengths

● According to sales estimates from analysts polled by Thomson-Reuters, the company is among the best with regard to growth.

● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.

● Thanks to a sound financial situation, the firm has significant leeway for investment.

● Historically, the company has been releasing figures that are above expectations.

● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.

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

● Over the last seven days, analysts have been revising upwards their EPS estimates for the company.

● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.

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

● Analysts covering this company mostly recommend stock overweighting or purchase.

● The tendency within the weekly time frame is positive above the technical support level at 55.6 USD


Weaknesses

● Stock prices approach a strong long-term resistance in weekly data at USD 88.64.

● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.

● Based on current prices, the company has particularly high valuation levels.

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 30.79 times its estimated earnings per share for the ongoing year.

● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.

Zonebourse.com 2018
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