Square, Inc.

SQ
Real-time BATS EXCHANGE - 04/06 03:20:23 pm
50.27USD
+14.91%

Square, Inc. : We expect the end of the technical rebound

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David Meurisse
Contributor / Partner

Strategy published on : 03/25/2020 | 09:28

short sell
Live

Entry price : 51.49$
Target : 37.1$
Stop-loss : 60.1$
Potential : 27.95%

The technical rebound should come to an end when reaching the current resistance zone while the bearish movement should once again gain in force.
Investors should open a short trade and target the $ 37.1.

Summary

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


Strengths

● The prospective high growth for the next fiscal years is among the main assets of the company

● The company is in a robust financial situation considering its net cash and margin position.

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

● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.

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

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

● 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, at 3.39 times its current sales, is high.

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

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

● Below the resistance at 57.85 USD, the stock shows a negative configuration when looking looking at the weekly chart.

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