The Surgutneftegas share is coming back to a technical support zone comprising the lower bound of the trading range. This provides a good timing to go long on the stock. Investors have an opportunity to buy the stock and target the RUB 38.
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.
The share is getting closer to its long-term support in weekly data, at RUB 26.86, which offers good timing for buyers.
Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
Thanks to a sound financial situation, the firm has significant leeway for investment.
Historically, the company has been releasing figures that are above expectations.
The company is one of the most undervalued, with an "enterprise value to sales" ratio at 85.6 for the 2020 fiscal year.
Its low valuation, with P/E ratio at 160.33 and 712.24 for the ongoing fiscal year and 2021 respectively, makes the stock pretty attractive with regard to earnings multiples.
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.
For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
As estimated by analysts, this group is among those businesses with the lowest growth prospects.
Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.
ę MarketScreener.com 2020
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