Privia Health Group, Inc. : Underpinned by a support level

05/23/2023 | 02:28am EDT

long trade Stop-loss triggered

Entry price : 26.21$ | Target : 29.93$ | Stop-loss : 24$ | Potential : 14.19%

The support at 24.72 USD, which is currently being tested, should allow Privia Health Group, Inc. shares to move back to the upside. Investors have an opportunity to buy the stock and target the $ 29.93.

Summary

• The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
• Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
• According to Refinitiv, the company's ESG score for its industry is poor.

Strengths

• Growth is a substantial asset for the company, as anticipated by dedicated analysts. Within the next three years, growth is estimated to reach 68% by 2025.
• The earnings growth currently anticipated by analysts for the coming years is particularly strong.
• The company is in a robust financial situation considering its net cash and margin position.
• Over the past year, analysts have regularly revised upwards their sales forecast for the company.
• Sales forecast by analysts have been recently revised upwards.
• For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
• For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
• 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 group usually releases upbeat results with huge surprise rates.

Weaknesses

• As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
• The company sustains low margins.
• With an expected P/E ratio at 100.73 and 70.07 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
• In relation to the value of its tangible assets, the company's valuation appears relatively high.
• The company is highly valued given the cash flows generated by its activity.
• Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.

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