Beacon Roofing Supply, Inc. : Bearish trend should continue
By Etienne Veber
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
US$28.03 | US$0 | US$28.8 | +100% |
From a fundamental viewpoint, the group is in a bad financial situation. Analysts have recently downgraded their forecasts for earnings per share. This indicator is often a precursor of a declining profitability and a worsening climate of investors' confidence.
Technically, the share is in a downward trend. The moving averages are decreasing and are still above prices, thereby stopping any rebounds. The security is going toward the USD 27.95 support, a level where we anticipate a breakdown.
Investors could take a short position in Beacon Roofing Supply below the daily support currently tested (USD 27.95) to target USD 24.7. They will also place a stop loss at USD 28.8.