Open House Co., Ltd.

3288
End-of-day quote Tokyo - 12/06
3000JPY
-0.66%

Open House Co., Ltd. : A good level to buy

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David Meurisse
Contributor / Partner

Strategy published on : 12/03/2019 | 09:49

long trade
Live

Entry price : 2920¥
Target : 3490¥
Stop-loss : 2650¥
Potential : 19.52%

Open House Co., Ltd. shares are closing back in on major support levels around 2757 JPY based on daily price data, which could offer attractive entry points.
Investors have an opportunity to buy the stock and target the ¥ 3490.

Summary

● 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.


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 JPY 2649 JPY in weekly data.

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

● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.

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

● The company shows low valuation levels, with an enterprise value at 0.77 times its sales.

● Its low valuation, with P/E ratio at 7.35 and 6.78 for the ongoing fiscal year and 2021 respectively, makes the stock pretty attractive with regard to earnings multiples.

● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.

● Over the last twelve months, the sales forecast has been frequently revised upwards.

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

● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

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


Weaknesses

● The underlying tendency is negative on the weekly chart below the resistance at 3780 JPY

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