The current trading zone is interesting to the point that investors should pay attention to the stock and anticipate a return of the underlying upward trend.
Summary
● In a short-term perspective, the company has interesting fundamentals.
Strengths
● The stock, which is currently worth 2020 to 0.69 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.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 32.4 EUR
Weaknesses
● The company does not generate enough profits, which is an alarming weak point.
● 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 group usually releases earnings worse than estimated.
● The firm trades with high earnings multiples: 63.8 times its 2020 earnings per share.
● For the past seven days, analysts have been lowering their EPS expectations for the company.
● For the past year, analysts have significantly revised downwards their profit estimates.
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Construcciones y Auxiliar de Ferrocarriles SA (CAF) is a Spain-based company engaged in the rolling stock manufacture. The Companyâs activities are divided into two business segments: Rolling stock, as well as Components and spare parts. The Rolling stock division focuses on the design, production and distribution of rolling stock and equipment for railway systems, such as high-speed vehicles, locomotives, trains for middle-distance transportation, commuter trains and electric motorcars, subway trains, streetcars, traction and signaling systems, as well as energy storage solutions. The Components and spare parts division offers elements and spare parts for rolling stock equipment, such as wheels, axles and gear units. In addition, the Company offers technical assistance, maintenance and after-sale services, as well as development of rail infrastructure, among others. It operates through numerous subsidiaries in Spain, France, Germany, the United States, Brazil and Mexico, among others.