NVIDIA Corporation

NVDA
Delayed Nasdaq - 03/22 09:00:00 pm
177.5USD
-3.5%

Good timing to go long again

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David Meurisse
Contributor / Partner

Strategy published on : 01/07/2019 | 11:17

long trade
Target price hit

Entry price : 139.78$
Target : 159.7$
Stop-loss : 134.4$
Potential : 14.25%

The support at 127.08 USD, which is currently being tested, should allow NVIDIA Corporation shares to move back to the upside.
Investors have an opportunity to buy the stock and target the $ 159.7.

Summary

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

● For a short-term investment strategy, the company has poor fundamentals.


Strengths

● 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 USD 129.57 USD in weekly data.

● Share prices are approaching a strong support area in daily data, which offers good timing for investors.

● Growth progress expectations are rather promising. Indeed, sales are expected to rise sharply in the coming years.

● The group's activity appears highly profitable thanks to its outperforming net margins.

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

● The group usually releases upbeat results with huge surprise rates.

● 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.


Weaknesses

● Based on current prices, the company has particularly high valuation levels.

● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.

● The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.

● For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.

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

● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 191.49 USD

Zonebourse.com 2019
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