Lithia Motors Inc
LAD
Delayed Nyse - 06/18 10:02:02 pm
103.51USD
+1.17%

The calm spell can be taken advantage of to put on new positions

Envoyer par e-mail
David Meurisse
Contributor / Partner

Strategy published on : 06/11/2018 | 16:47

long trade
Live

Entry price : 102$
Target : 117.4$
Stop-loss : 97.5$
Potential : 15.1%

An exit from the recently observed accumulation phase to the upside could allow for the assumption that a clear upward trend is re-established with an increase in volatility.
Investors have an opportunity to buy the stock and target the $ 117.4.

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 share is getting closer to its long-term support in weekly data, at USD 91.42, which offers good timing for buyers.

● Predictions on business development from analysts polled by Thomson-Reuters are tight. This results from either a good visibility into core activities or accurate earnings releases.

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

● The stock, which is currently worth 2018 to 0.29 times its sales, is clearly overvalued in comparison with peers.

● Its low valuation, with P/E ratio at 9.62 and 9.03 for the ongoing fiscal year and 2019 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 last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.

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

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

Zonebourse.com 2018
Envoyer par e-mail