The Wendy's Company : The target price as per the weekly chart was reached
Entry price | Target | Stop-loss | Potential |
---|
$21.74 |
$14.1 |
$24.7 |
+35.14% |
---|
The resistance zone around 23.94 USD on the weekly chart shuold rein in spikes to the upside. The timing to get ahead of the start of a correction in shares of The Wendy's Company seems very opportune.
Strengths● The group usually releases upbeat results with huge surprise rates.
Weaknesses● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● The stock is close to a major daily resistance at USD 23.94, which should be gotten rid of so as to gain new appreciation potential.
● One of the major weak points of the company is its financial situation.
● The company's enterprise value to sales, at 4.14 times its current sales, is high.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 43.03 times its estimated earnings per share for the ongoing year.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
● Analysts covering the stock have recently lowered their earnings forecast.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
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