Valmont Industries, Inc. : Supported by the 20-day moving average
February 26, 2013 at 09:33 am EST
By
Share
BUY
Live
Entry price
Target
Stop-loss
Potential
$151.45
$0
$147.7
-100%
The USD 159 resistance is in line of sight.
The company shows strong fundamentals. Firstly, sales are expected to rise by more than 12% in 2013. Moreover, the consensus revised upward EPS estimates for this year and that let see a great potential for the security on the stock market. Finally, the results of the 4th quarter of 2012, published last week, have clearly beaten estimates.
Technically, the security is in an uptrend on all time scales. Prices should bounce on the USD 150.3 short term support which is corresponding to the 20-day moving average, coming as support. This trend should allow the stock to reach its USD 159 long term resistance, which will be the first target price.
In consequence, investors can take a long position in Valmont Industries with a first target price at USD 159. This level is the long term resistance. A new bullish fluctuation could lead the security toward its highest level in case of breakout of this resistance. A stop loss will be fixed under the short term support at USD 150.3.
Valmont Industries, Inc. is a manufacturer of products and services for infrastructure and agricultural markets. The Company operates through two segments: Infrastructure and Agriculture. The Infrastructure segment consists of the manufacture and distribution of products and solutions to serve the infrastructure markets of utility, solar, lighting, transportation, and telecommunications, along with coatings services to protect metal products. Its Infrastructure segment is comprised of five primary product lines: Transmission, Distribution, and Substation (TD&S); Lighting and Transportation (L&T); Coatings; Telecommunications, and Solar. The Agriculture segment consists of the manufacture of center pivot components and linear irrigation equipment for agricultural markets, including parts and tubular products, and advanced technology solutions for precision agriculture. It manufactures and distributes mechanical irrigation equipment and related service parts under the Valley brand name.
VALMONT INDUSTRIES, INC. 
