Mattel

MAT
Real-time BATS EXCHANGE - 02/20 12:54:30 pm
13.135USD
+0.69%

Mattel : The long term upward trend could suffer in the short term

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David Meurisse
Contributor / Partner

Strategy published on : 02/14/2020 | 10:39

short sell
Live

Entry price : 14.47$
Target : 12.4$
Stop-loss : 15.01$
Potential : 14.31%

Mattel shares are trading close to a major resistance on the weekly chart around 14.63 USD. A short term correction would be a logical consequence.
Investors should open a short trade and target the $ 12.4.

Summary

● The company usually posts poor financials for mid or long term investments.

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


Strengths

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

● The stock is in a well-established, long-term rising trend above the technical support level at 11.67 USD


Weaknesses

● Stock prices approach a strong long-term resistance in weekly data at USD 14.63.

● Technically, the stock approaches a strong medium-term resistance at USD 14.68.

● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.

● The company has insufficient levels of profitability.

● The company is in debt and has limited leeway for investment

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

● The group usually releases earnings worse than estimated.

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 104.08 times its estimated earnings per share for the ongoing year.

● For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.

● 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.

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