JBS S.A. ● 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.
Strengths
● Historically, the company has been releasing figures that are above expectations.
● The stock, which is currently worth 2021 to 0.42 times its sales, is clearly overvalued in comparison with peers.
● Its low valuation, with P/E ratio at 7.73 and 8.99 for the ongoing fiscal year and 2022 respectively, makes the stock pretty attractive with regard to earnings multiples.
● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Over the last seven days, analysts have been revising upwards their EPS estimates for the company.
● For several months, analysts have been revising their EPS estimates roughly upwards.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● The tendency within the weekly time frame is positive above the technical support level at 25.82 BRL
Weaknesses
● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
● The company sustains low margins.
