Plexus Corp. : Offers a growth potential
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$39.93 | $0 | $38.7 | -100% |
The company characterizes by great growth and strong profitability. Upward revisions have been made on EPS and earnings in a two-year horizon giving argument for an upward movement of the stock. Moreover, valuation levels are still low with an "EV/Sales" ratio at 0.55x.
Recently, the evolution of the equity brought prices close to the short-term support at USD 37.8 which acts as a protection wall from the downtrend. This area and a bullish trendline are expected to annihilate bearish possibilities. Technical indicators allow aiming at USD 41.9, and later the medium-term resistance at USD 44.6.
Therefore, a buyer position could be taken over the short-term support at USD 39.1. The main target will be set at USD 44.6 with a mean objective at USD 41.92. The stop-loss could be triggered once the support broke.