|Contributor / Partner
Strategy published on : 11/20/2020 | 02:18
long tradeTarget price hit
Entry price : 28.5CAD
Target : 30.04CAD
Stop-loss : 27.47CAD
Potential : 5.4%
The timing appears opportune to go long in shares of Hydro One Limited as we anticipate another pick-up in the underlying trend.
Investors have an opportunity to buy the stock and target the CAD 30.04.
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
● The company returns high margins, thereby supporting business profitability.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● The group usually releases upbeat results with huge surprise rates.
● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
● For the last week, the earnings per share forecast has been revised upwards. According to recent estimates, analysts give a positive overview of the stock
● For several months, analysts have been revising their EPS estimates roughly upwards.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 27.06 CAD
● One of the major weak points of the company is its financial situation.
● With an enterprise value anticipated at 4.42 times the sales for the current fiscal year, the company turns out to be overvalued.