Cimarex Energy
XEC
Real-time BATS EXCHANGE - 04/23 10:00:00 pm
102.63USD
+1.76%

Close to a key level on the weekly chart

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Anas Lozach
Analyst

Strategy published on : 04/16/2018 | 16:15

long trade
Live

Entry price : 94.58$
Target : 108$
Stop-loss : 87.9$
Potential : 14.19%

Cimarex Energy 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.
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

● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at USD 90.46 USD in weekly data.

● Graphically speaking, the timing seems perfect for purchasing the stock close to the USD 89.81 support.

● The prospective high growth for the next fiscal years is among the main assets of the company

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

● The company's attractive earnings multiples are brought to light by a P/E ratio at 12.75 for the current year.

● Sales forecast by analysts have been recently revised upwards.

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

● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.

● 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

● With an enterprise value anticipated at 4.22 times the sales for the current fiscal year, the company turns out to be overvalued.

● The company is not the most generous with respect to shareholders' compensation.

● Below the resistance at 106.5 USD, the stock shows a negative configuration when looking looking at the weekly chart.

Zonebourse.com 2018
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