Helmerich & Payne

HP
Real-time BATS EXCHANGE - 02/20 01:33:14 pm
45.775USD
+0.84%

Helmerich & Payne : Target reached

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Gallien Girardot
 

Strategy published on : 02/12/2020 | 10:39

short sell
Live

Entry price : 44.96$
Target : 41.5$
Stop-loss : 46.6$
Potential : 7.7%

Current price levels represent good timing for the opening of new short positions with respect to shares in Helmerich & Payne. The resistance zone around 47.4 USD could effectively set off a correction phase over the short term.
Investors should open a short trade and target the $ 41.5.

Summary

● In view of fundamental criteria, the company is among low performers as far as mid or long-term investment strategy is concerned.

● The company has poor fundamentals for a short-term investment strategy.


Strengths

● The company is in a robust financial situation considering its net cash and margin position.

● Historically, the company has been releasing figures that are above expectations.

● The company is one of the best yield companies with high dividend expectations.

● Over the last seven days, analysts have been revising upwards their EPS estimates for the company.


Weaknesses

● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.

● Low profitability weakens the company.

● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.

● With an expected P/E ratio at 71.52 and 63.93 respectively for both the current and next fiscal years, the company operates with high earnings multiples.

● Revenue estimates are regularly revised downwards for the current and coming years.

● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.

● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.

● For the past year, analysts have significantly revised downwards their profit estimates.

● Below the resistance at 48.4 USD, the stock shows a negative configuration when looking looking at the weekly chart.

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