GSX Techedu 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 $ 50.3.
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 poor fundamentals for a short-term investment strategy.
Analysts expect a sharply increasing business volume for the group, with high growth rates in the coming years.
Thanks to a sound financial situation, the firm has significant leeway for investment.
Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
Over the past year, analysts have regularly revised upwards their sales forecast for the company.
Over the last seven days, analysts have been revising upwards their EPS estimates for the company.
The stock is in a well-established, long-term rising trend above the technical support level at 29.73 USD
Stock prices approach a strong long-term resistance in weekly data at USD 87.63.
The stock is close to a major daily resistance at USD 87.86, which should be gotten rid of so as to gain new appreciation potential.
Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
Based on current prices, the company has particularly high valuation levels.
With an expected P/E ratio at 32.48 and 16.92 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.
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