Strategy published on : 10/15/2020 | 11:16
long tradeTarget price hit
Entry price : 424.51$
Target : 433$
Stop-loss : 391$
Potential : 2%
The timing appears opportune to go long in shares of Humana Inc. as we anticipate another pick-up in the underlying trend.
Investors have an opportunity to buy the stock and target the $ 433.
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
● Its core activity has a significant growth potential and sales are expected to surge, according to Standard & Poor's' forecast. Indeed, those may increase by 38% by 2022.
● 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.
● The stock, which is currently worth 2020 to 0.74 times its sales, is clearly overvalued in comparison with peers.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The tendency within the weekly time frame is positive above the technical support level at 319.68 USD
● Stock prices approach a strong long-term resistance in weekly data at USD 433.44.
● Technically, the stock approaches a strong medium-term resistance at USD 433.44.
● The company is not the most generous with respect to shareholders' compensation.