ITT Corp : Benefit from the rebound
Entry price | Target | Stop-loss | Potential |
---|
$37.17 |
$0 |
$36.11 |
-100% |
---|
The sound fundamentals of the company as well as the technical configuration should allow ITT Corp to rally again.
The business displays an attractive valuation (P/E ratio of 15.3x for 2015) and a strong profitability (Net margin is estimated at 8.31 in 2015). Analysts average target price is set at USD 48.6, a 31% gain potential.
Graphically, the stock is currently oversold and is trading in a short term bearish trend. This last one is likely to get reversed after contact with the USD 37.1 support. This threshold means a trading opportunity in order to anticipate a technical rebound toward USD 39.18.
The timing seems suitable to open a long position on the stock in order to target a return toward the 39.2 level. However, investors should place a stop loss order under the current support in order to manage their risk.
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