Commercial Metals Company : The underlying trend is in force again
Entry price | Target | Stop-loss | Potential |
---|
$24.99 |
$30 |
$21.8 |
+20.05% |
---|
The current trading zone is interesting to the point that investors should pay attention to the stock and anticipate a return of the underlying upward trend.
Summary● 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.
Strengths● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.59 for the 2021 fiscal year.
● The company's attractive earnings multiples are brought to light by a P/E ratio at 13.31 for the current year.
● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
● The stock is in a well-established, long-term rising trend above the technical support level at 18.28 USD
Weaknesses● Technically, the stock approaches a strong medium-term resistance at USD 25.59.
● The company sustains low margins.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.
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