Locaweb Serviços de Internet S.A.'s shares display attractive technical aspects to anticipate a comeback of the underlying trend.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
Strengths
● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at BRL 19.76 BRL in weekly data.
● The prospective high growth for the next fiscal years is among the main assets of the company
● The company returns high margins, thereby supporting business profitability.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● 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.
● Over the last seven days, analysts have been revising upwards their EPS estimates for the company.
● For the past twelve months, EPS forecast has been revised upwards.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 19.76 BRL
Weaknesses
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● The company benefits from high valuations in earnings multiples.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
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Lwsa SA, formerly Locaweb Servicos de Internet SA, is a Brazil-based provider of Business-to-Business (B2B) technology solutions. The Companyâs activities are divided into two operating segments: Be Online/SaaS and Commerce. The Be Online/SaaS segment offers services of hosting, hosting reseller, domain registration, cloud computing and dedicated servers, as well as solutions related to email accounts, email marketing campaigns and Internet Protocol (IP) communication, mainly through brands Locaweb, KingHost, and Octadesk. The Commerce segment is engaged in facilitating online retail operations, providing e-commerce platforms and payment solutions, mainly through brands Tray, Bagy, Melhor Envio, Wake Commerce, Squid by Wake, and Bling CPlug.