Norbord Inc
NBD
End-of-day quote Toronto Stock Exchange - 08/18
40.83CAD
-0.51%

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

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David Meurisse
Contributor / Partner

Strategy published on : 08/08/2017 | 15:06

long trade
Live

Entry price : 41.5CAD
Target : 46.7CAD
Stop-loss : 39.8CAD
Potential : 12.53%

After several weeks of range-bound movement, shares in Norbord Inc could enter into a new clear trend. The exit out of the current trading range could be the signal for a return of volatility.
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 group's high margin levels account for strong profits.

● Its low valuation, with P/E ratio at 9.26 and 8.46 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 seven days, analysts have been revising upwards their EPS estimates for the company.

● 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.

● The stock is in a well-established, long-term rising trend above the technical support level at 35.02 CAD


Weaknesses

● Stock prices approach a strong long-term resistance in weekly data at CAD 42.26.

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