Shares in Autohome Inc (ADR) show a positive technical chart pattern over the medium term. The timing to jump back on the rising trend seems good. Investors have an opportunity to buy the stock and target the $ 103.6.
The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
According to sales estimates from analysts polled by Thomson-Reuters, the company is among the best with regard to growth.
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.
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.
Over the last twelve months, the sales forecast has been frequently revised upwards.
Over the last seven days, analysts have been revising upwards their EPS estimates for the company.
For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.
For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
Analysts covering this company mostly recommend stock overweighting or purchase.
The tendency within the weekly time frame is positive above the technical support level at 55.6 USD
Stock prices approach a strong long-term resistance in weekly data at USD 88.64.
The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.
Based on current prices, the company has particularly high valuation levels.
The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 30.79 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.
The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.
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