Staples, Inc. : Anticipating a technical rebound
 |
04/11/2012 | 11:04am
Opinion : Bullish above 15.4 USD
Target price : 16.8 USD
Stop loss: 14.7 USD
|
NASDAQ
Retail - Specialty |
Staples, the largest U.S office suppliers had published fourth quarter profit to $283.6 million from $274.7 million a year ago. Thomson Reteurs’consensus expected $279 million.
However Staples’ management expects for 2012, a slow growth in the U.S economy and a soft demand environment in Europe. Currently, the company is trading at a low level compared to historic benchmark as shown by the ratio “enterprise value/revenue” at 0.44x. Besides, the EPS estimates are equal for the last 6 months.
In early march, after several attempts the stock has successfully breaks through the USD 15.5 technical line. After that, this movement has entailed an impetus to the USD 16.85 resistance. Then, a profit taking phase is occured and the share has fallen to USD 15.4.
For a trading strategy, market participants can anticipate a technical rebound bolstered by 50-days moving average up which could push the share to the USD 16.85. It would be advisable to buy the stock at the current price but if the security falls below USD 15, this strategy will be cancelled.
 |
Alexandre Nutte
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.
|
|
|
|
|
Valuation |
2014e |
2015e |
|
PER (Price / EPS)
|
10,9x |
10,3x |
|
Capitalization / Revenue
|
0,41x |
0,41x |
|
EV / Revenue
|
0,42x |
0,41x |
|
EV / EBITDA
|
5,20x |
5,05x |
|
Yield (DPS / Price)
|
3,32% |
3,48% |
| Profitability |
2014e |
2015e |
|
Operating Margin (EBIT / Sales)
|
5,97% |
5,89% |
|
operating laverage (Delta EBIT / Delta Sales)
|
-3,65x |
-6,39x |
|
Net Margin (Net Profit / Revenue)
|
3,67% |
3,79% |
|
ROA (Net Profit / Asset)
|
7,13% |
6,81% |
|
ROE (Net Profit / Equities)
|
13,4% |
12,5% |
|
Rate of Dividend
|
36,1% |
35,7% |
|
|
|
