Strategy published on : 08/08/2017 | 14:19
long tradeTarget price hit
Entry price : 98.47$
Target : 106.3$
Stop-loss : 95.2$
Potential : 7.95%
Red Hat Inc shares are trading close to a major resistance level. Given the share's technical chart pattern, investors could anticipate that this resistance zone will be broken which could lead to new upside potential.
Investors have an opportunity to buy the stock and target the $ 106.3.
● 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.
● Its core activity has a significant growth potential and sales are expected to surge, according to Thomson Reuters' forecast. Indeed, those may increase by 49% by 2020.
● The company returns high margins, thereby supporting business profitability.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● The group usually releases upbeat results with huge surprise rates.
● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.
● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The stock is in a well-established, long-term rising trend above the technical support level at 82.96 USD
● Stock prices approach a strong long-term resistance in weekly data at USD 99.42.
● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 55.51 times its estimated earnings per share for the ongoing year.