Express, Inc. : In an upward trend
By Arnaud Le Berre
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$21 | $0 | $20.5 | -100% |
From a fundamental viewpoint, the company is trading at a low level as shown by the “enterprise value/revenue” ratio at 0.75x. PER is moderate (estimated at 13.1x in 2014).
Technically, the stock is moving in an upward trend for many weeks. This movement reflects a buyer enthusiasm confirmed also by the well orientation of moving averages. The security is trading inside a bullish wedge for few months and is now close to the lower limit of the latter. We could expect a new impetus on this level to join again the upper limit near USD 22.5.
Given these elements, most active investors could take a buying position at the current price to aim USD 22.5. A stop loss is placed below USD 21, threshold that would invalidate the bullish strategy.