Strategy published on : 05/03/2021 | 11:41
Entry price : 300.2ZAR
Target : 343ZAR
Stop-loss : 289ZAR
Potential : 14.26%
The recent downturn has taken AngloGold Ashanti Limited shares close to a medium term support level around 292.98 ZAR. The timing for a long trade in the stock appears good.
Investors have an opportunity to buy the stock and target the ZAR 343.
● For a short-term investment strategy, the company has poor fundamentals.
● Graphically speaking, the timing seems perfect for purchasing the stock close to the ZAR 292.98 support.
● 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 equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
● 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 sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● 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.
● The underlying tendency is negative on the weekly chart below the resistance at 434.29 ZAR