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