|Contributor / Partner
Strategy published on : 10/10/2017 | 15:30
long tradeStop-loss triggered
Entry price : 21MXN
Target : 28.7MXN
Stop-loss : 19.9MXN
Potential : 36.67%
The technical chart pattern of Grupo Sanborns SAB de CV shares shows signs of a reversal that argue in favor of a return to a positive outlook over the medium term.
Investors have an opportunity to buy the stock and target the MXN 28.7.
● 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 share is getting closer to its long-term support in weekly data, at MXN 20.83, which offers good timing for buyers.
● Share prices are approaching a strong support area in daily data, which offers good timing for investors.
● Predictions on business development from analysts polled by Thomson-Reuters are tight. This results from either a good visibility into core activities or accurate earnings releases.
● As regards fundamentals, the enterprise value to sales ratio is at 0.9 for the current period. Therefore, the company is undervalued.
● Its low valuation, with P/E ratio at 11.79 and 11.12 for the ongoing fiscal year and 2018 respectively, makes the stock pretty attractive with regard to earnings multiples.
● The company is one of the best yield companies with high dividend expectations.
● 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.