● 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
● The share is getting closer to its long-term support in weekly data, at BRL 15.59, which offers good timing for buyers.
● The close medium term support offers good timing for purchasing the stock.
● Historically, the company has been releasing figures that are above expectations.
● As regards fundamentals, the enterprise value to sales ratio is at 1.3 for the current period. Therefore, the company is undervalued.
● Its low valuation, with P/E ratio at 8.72 and 8.53 for the ongoing fiscal year and 2022 respectively, makes the stock pretty attractive with regard to earnings multiples.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● 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.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● The stock is in a well-established, long-term rising trend above the technical support level at 15.59 BRL