Square Inc

SQ
Delayed Nyse - 02/19 10:02:33 pm
76.64USD
+1.32%

Expectation of a turn-around

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David Meurisse
Contributor / Partner

Strategy published on : 01/11/2019 | 10:17

long trade
Live

Entry price : 65.74$
Target : 79.7$
Stop-loss : 59.9$
Potential : 21.24%

Square Inc shares could get back into a rising trend over the medium term, as suggested by technical indicators.
Investors have an opportunity to buy the stock and target the $ 79.7.

Summary

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


Strengths

● Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.

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

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

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

● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.


Weaknesses

● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.

● The company does not generate enough profits, which is an alarming weak point.

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

● The company's "enterprise value to sales" ratio is among the highest in the world.

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

Zonebourse.com 2019
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