The decline over the past weeks has brought the price of Dana Inc shares back to an important technical support level at 22.67 USD. This represents an opportunity to take advantage of these prices levels.
Summary
● 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
● The share is getting closer to its long-term support in weekly data, at USD 22.67, which offers good timing for buyers.
● Graphically speaking, the timing seems perfect for purchasing the stock close to the USD 22.3 support.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
● Its low valuation, with P/E ratio at 7.72 and 6.89 for the ongoing fiscal year and 2019 respectively, makes the stock pretty attractive with regard to earnings multiples.
● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● The underlying tendency is negative on the weekly chart below the resistance at 28.01 USD
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Dana Incorporated is engaged in providing power-conveyance and energy-management solutions for vehicles and machinery. The Company's portfolio improves the efficiency, performance, and sustainability of light vehicles, commercial vehicles, and off-highway equipment. It offers axles, driveshafts, transmissions, sealing and thermal products to electrifications products including motors, inverters, controllers, e-sealing, e-thermal and digital solutions. The Company operates through four segments: Light Vehicle Drive Systems, Commercial Vehicle Drive and Motion Systems, Off-Highway Drive and Motion Systems, and Power Technologies. The Company owns and have licensed trademarks, such as Spicer Electrified, Victor Reinz, Long, Graziano and Dana TM4. The Company operates in North America, Europe, South America and Asia Pacific regions. Its North America includes Canada, Mexico and United States of America. Its Europe regions include Belgium, Netherlands, Germany and Hungary.