Jack in the Box Inc. : Towards the breakout of a major resistance level
Entry price | Target | Stop-loss | Potential |
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$121.21 |
$140 |
$110 |
+15.5% |
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Jack in the Box Inc. shares are closing in on important technical levels. The technical chart pattern suggests that the currently tested resistance will be broken and new upside potential arises while volatility is likely to increase. Investors could get ahead of this signal in order to benefit from a better risk/reward ratio.
Summary● The company has solid fundamentals for a short-term investment strategy.
Strengths●
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.
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● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
Weaknesses● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
● The company is in a hindered financial situation with significant debt and rather low EBITDA levels.
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