Hibbett Sports, Inc.’s share price was heavily penalized and is now in an oversold situation near to a solid support area.

From a fundamental viewpoint, the company seems undervalued relatively to its peers with a EV/Sales of 0.78.
However, analysts have revised slightly downward their earnings forecasts.
With an EPS estimated at USD 2.86 for this year and USD 3.15 for the next year, Hibbett Sports is currently paid 12.06 and 10.95 times the expected results.

The security follows a downward trend in the short term, under the USD 37.4 resistance area. However, the selling pressure could soon run out of steam. Indeed, whereas the stock shows an oversold condition, the USD 33.1 support area currently tested might stop the bearish trend in the short term.

Considering technical and fundamental elements, it seems to be an appropriate timing to open a long trade in Hibbett Sports in order to benefit from the USD 33.1 support area. A first target price will be the USD 37.37 resistance, ie a potential of around 7%. A stop loss order will be placed under the mid-term support currently tested. Only a crossing of USD 37.37 would validate a bullish trend in order to aim higher target price on a mid-term horizon.