Electronic Arts Inc. : In oversold condition
 |
01/18/2012 | 01:18pm
Opinion : Bullish above 17.6 USD
Target price : 21.3 USD
Stop loss: 17 USD
|
NASDAQ
Leisure Products |
In the past few sessions the Electronic Arts Inc.'s share has suffered a sharp fall and now is coming back on important level of support.
Currently, the share is within oversold zone and moving in a bearish trend on the medium-term. In the short-term this trend could be reversed in contact with 17.62 USD. The share should be able to rise in the coming sessions. This support represents an important purchase opportunity within the framework of technical rebound towards of 19.85 USD and then to the 25.2 USD.
From a fundamental viewpoint, with a "entreprise value to sales" ratio for this financial year of 0.98 the company seems weak valued relatively. In the recent months, the earnings prospects for the next year is regularly revised upwards by analysts covering the entreprise ; with estimated earnings per share for this year by consensus of 0.35 USD and 0.58 USD for next year
The technical pattern and strong Electronic Arts Inc.'s fundamentals is a good opportunity for active investors to buy above of 17.6 USD. The potential drop is limited and the timing seems ideal to benefit of technical rebound. The first target price is 19.9 USD, and then to aim at 25.2 USD. However, we shouldn't continue this strategy under 17.6 USD, in fact the downwards trend could restart.
 |
|
Copyright (c) 2013 4-Traders.com |
Disclaimer : 4-Traders.com is not registered as a securities broker-dealer or investment adviser with any jurisdiction and is not providing any personalized financial, investment or tax advice. 4-Traders cannot assess or guarantee the suitability of any particular investment to any personal situation. Accordingly, you bear complete responsibility for your own investment, financial, and tax research and decisions and should seek the advice of a qualified professional prior to making any decisions based on 4-Traders' website information. This article is provided solely for informational purposes, and does not constitute an offer or solicitation to buy or sell any securities. All opinions expressed and information and data provided therein are subject to change without notice.
|
|
|
|
| Profitability |
2014e |
2015e |
|
Operating Margin (EBIT / Sales)
|
12,6% |
14,2% |
|
operating laverage (Delta EBIT / Delta Sales)
|
5,46x |
3,33x |
|
Net Margin (Net Profit / Revenue)
|
-6,16% |
-2,76% |
|
ROA (Net Profit / Asset)
|
7,67% |
7,66% |
|
ROE (Net Profit / Equities)
|
14,0% |
17,0% |
|
Rate of Dividend
|
- |
- |
|
|
|
