The timing appears opportune to go long in shares of Hydro One Limited as we anticipate another pick-up in the underlying trend. Investors have an opportunity to buy the stock and target the CAD 30.04.
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 solid fundamentals for a short-term investment strategy.
The company returns high margins, thereby supporting business profitability.
Considering the small differences between the analysts' various estimates, the group's business visibility is good.
The group usually releases upbeat results with huge surprise rates.
The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
For the last week, the earnings per share forecast has been revised upwards. According to recent estimates, analysts give a positive overview of the stock
For several months, analysts have been revising their EPS estimates roughly upwards.
For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
Within the weekly time frame the stock shows a bullish technical configuration above the support level at 27.06 CAD
One of the major weak points of the company is its financial situation.
With an enterprise value anticipated at 4.42 times the sales for the current fiscal year, the company turns out to be overvalued.
ę MarketScreener.com 2020
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