LOCAWEB SERVIÇOS DE INTERNET S.A. ● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths
● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at BRL 19.76 BRL in weekly data.
● The prospective high growth for the next fiscal years is among the main assets of the company
● The company returns high margins, thereby supporting business profitability.
● 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 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 the past twelve months, EPS forecast has been revised 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.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 19.76 BRL
Weaknesses
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● The company benefits from high valuations in earnings multiples.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
