IAC/InterActiveCorp
IAC
Delayed Nasdaq - 09/21 10:00:03 pm
210.49USD
-2.13%

The underlying trend is to the upside

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Floriane Rousseaux
Junior Analyst

Strategy published on : 07/11/2018 | 15:59

long trade
Target price hit

Entry price : 151.6$
Target : 166$
Stop-loss : 144$
Potential : 9.5%

The current trading zone is interesting to the point that investors should pay attention to the stock and anticipate a return of the underlying upward trend.
Investors have an opportunity to buy the stock and target the $ 166.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● In a short-term perspective, the company has interesting fundamentals.


Strengths

● Its core activity has a significant growth potential and sales are expected to surge, according to Thomson Reuters' forecast. Indeed, those may increase by 59% by 2020.

● The group's high margin levels account for strong profits.

● Thanks to a sound financial situation, the firm has significant leeway for investment.

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

● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.

● Over the past year, analysts have regularly revised upwards their sales forecast for the company.

● For several months, analysts have been revising their EPS estimates roughly upwards.

● 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 difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.

● The stock is in a well-established, long-term rising trend above the technical support level at 129.15 USD


Weaknesses

● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 37.64 times its estimated earnings per share for the ongoing year.

Zonebourse.com 2018
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