C&J Energy Services
CJ
Real-time BATS EXCHANGE - 06/25 09:10:05 pm
23.445USD
-3.26%

A long term support level to be taken advantage of

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David Meurisse
Contributor / Partner

Strategy published on : 03/09/2018 | 15:20

long trade
Target price hit

Entry price : 25.4$
Target : 29.9$
Stop-loss : 22.7$
Potential : 17.72%

C&J Energy Services Inc shares are closing near attractive entry levels for a medium term horizon. Investors could regard the decline over the past weeks as a buying opportunity.
Investors have an opportunity to buy the stock and target the $ 29.9.

Summary

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

● The company has solid fundamentals for a short-term investment strategy.


Strengths

● The share is getting closer to its long-term support in weekly data, at USD 23.97, which offers good timing for buyers.

● Share prices are approaching a strong support area in daily data, which offers good timing for investors.

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

● The company is in a robust financial situation considering its net cash and margin position.

● Its low valuation, with P/E ratio at 8.67 and 5.47 for the ongoing fiscal year and 2019 respectively, makes the stock pretty attractive with regard to earnings multiples.

● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● For the last week, the earnings per share forecast has been revised upwards. According to recent estimates, analysts give a positive overview of the stock

● For the past twelve months, EPS forecast has been revised upwards.

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

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.


Weaknesses

● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.

● Below the resistance at 29.34 USD, the stock shows a negative configuration when looking looking at the weekly chart.

Zonebourse.com 2018
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