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 2020 to 0.32 times its sales, is clearly overvalued in comparison with peers.
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.
For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.
Analysts covering this company mostly recommend stock overweighting or purchase.
The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses
Stock prices approach a strong long-term resistance in weekly data at GBX 360.
Technically, the stock approaches a strong medium-term resistance at GBX 332.
With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
The company does not generate enough profits, which is an alarming weak point.
The company is not the most generous with respect to shareholders' compensation.
For the past year, analysts have significantly revised downwards their profit estimates.