Lear Corporation : Signal above USD 73.8
By Sandra Pinturault
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
US$72.21 | US$82 | US$71.4 | +13.56% |
The company shows strong fundamentals. Firstly, the security is undervalued compared to its peers with an EV/Sales ratio estimated at 0.37 by the Thomson Reuters analysts for this year. Moreover, the consensus revised upward EPS estimates for this year and that let see a great potential for the security on the stock market.
Technically, the security shows a bullish configuration on all time scales. Prices are supported by increasing moving averages. In daily data, 20 and 50-day moving average helps the stock to keep its uptrend.
Thanks to these good indicators, it seems relevant to take a long position in Lear Corporation above the USD 73.8 resistance. The target price is the USD 82, corresponding to the bullish trend line. A stop loss will be set under the entry point because a breakdown of this level would damage technical pattern.