American Woodmark Corporation : The bullish trend is not over
Entry price | Target | Stop-loss | Potential |
---|
$70.43 |
$80 |
$65.8 |
+13.59% |
---|
American Woodmark specialist in the manufacture and distribution of kitchen cabinets, continues its bullish rally started earlier this year with a performance of +75% for testing again its highest at USD 71.6.
The group fundamentals reveals a quality profile confirmed by excellent Surperformance ratings. Sales are increasing every year, reaching USD 825 million for the year 2015. That is to say a 12% increase. Moreover, consensus Thomson Reuters has regularly revised upwards the forecast earnings per share at USD 2.21 and estimated at USD 2.87 in 2016.
From a technical point of view, the stock moves in an uptrend supported by its moving averages. This progression is expected to quickly reach the resistance of USD 70.8, level recently tested. A breakout above this resistance would open new bullish targets.
In view of these good fundamentals and technical indicators, it seems appropriate to place an order at the breakout of this key resistance (with a target at USD 80) and will permit a potential gain of 11%. A stop-loss will nevertheless be placed on the level of USD 66, a return on this threshold would invalidate our strategy.
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