Beacon Roofing Supply, Inc. : An opportune reversal
By Alexandre Nutte
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
US$25.95 | US$27.6 | US$24.5 | +6.36% |
The group enjoys upward revisions in earnings per share and growth prospects. Indeed, the Thomson Reuters consensus expect sales to grow for the fiscal year at $1.8 billion against $1.6 billion for the previous year.
Graphically, buyer flows are reduced. If the trend is now neutral in the short term, profit taking is part of a rebound on the USD 25.5 and therefore does not affect the upward trend in the medium and long term.
Consequently, we expect a decline toward the 100 and 50-day moving averages at USD 25.5. The most active investors can buy the share in this area and target a return toward USD 27.6. A stop loss can be placed under the USD 24.8 support.