|Contributor / Partner
Strategy published on : 01/13/2020 | 09:36
Entry price : 4.43HKD
Target : 4.87HKD
Stop-loss : 4.27HKD
Potential : 9.93%
The recent downside mouvement appears to lose momentum which could allow China Railway Signal & Communication Corporation Limited shares to regain a positive medium term outlook.
Investors have an opportunity to buy the stock and target the HKD 4.87.
● 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.
● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at HKD 4.13 HKD in weekly data.
● Growth is a substantial asset for the company, as anticipated by dedicated analysts. Within the next three years, growth is estimated to reach 41% by 2021.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.66 for the 2019 fiscal year.
● Its low valuation, with P/E ratio at 11.04 and 9.52 for the ongoing fiscal year and 2020 respectively, makes the stock pretty attractive with regard to earnings multiples.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● The group usually releases earnings worse than estimated.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● For the past seven days, analysts have been lowering their EPS expectations for the company.
● For the last few months, analysts have been revising downwards their earnings forecast.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
● Below the resistance at 5.26 HKD, the stock shows a negative configuration when looking looking at the weekly chart.