CDW Corp

CDW
Delayed Nasdaq - 07/18 10:00:00 pm
112.41USD
-0.94%

Towards the breakout of a major resistance level

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David Meurisse
Contributor / Partner

Strategy published on : 07/12/2019 | 10:10

long trade
Live

Entry price : 115.08$
Target : 121.7$
Stop-loss : 109.7$
Potential : 5.75%

CDW Corp shares are closing in on important technical levels. The technical chart pattern suggests that the currently tested resistance will be broken and new upside potential arises while volatility is likely to increase. Investors could get ahead of this signal in order to benefit from a better risk/reward ratio.
Investors have an opportunity to buy the stock and target the $ 121.7.

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

● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.

● Sales forecast by analysts have been recently revised upwards.

● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.

● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.

● Analysts covering this company mostly recommend stock overweighting or purchase.

● The stock is in a well-established, long-term rising trend above the technical support level at 92.3 USD


Weaknesses

● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.

● 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 sustains low margins.

● The firm trades with high earnings multiples: 23.79 times its 2019 earnings per share.

● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

Zonebourse.com 2019
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