MEDNAX, INC.

MD
Delayed Quote. Delayed  - 01/15 04:10:00 pm
23.6USD -1.30%

MEDNAX, Inc. : After the gains, a correction ?

David Meurisse
Contributor / Partner

Strategy published on : 07/30/2020 | 09:52

short sell
Stop-loss triggered

Entry price : 19.58$
Target : 15.1$
Stop-loss : 21.5$
Potential : 22.88%

MEDNAX, Inc. shares could experience selling pressure following the strong increase in its stock price. Over the short term, the stock in fact displays first signs of exhaustion.
Investors should open a short trade and target the $ 15.1.

Summary

● The company usually posts poor financials for mid or long term investments.

Weaknesses

● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.

● Low profitability weakens the company.

● The company is in a hindered financial situation with significant debt and rather low EBITDA levels.

● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 45.77 times its estimated earnings per share for the ongoing year.

● The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.

● For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.

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

● 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 appreciation potential seems limited due to the average target prices set by the analysts covering the stock.

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