The Eastern Company (NASDAQ:EML) Finding Strong Support

The Eastern Company (NASDAQ:EML) Finding Strong Support


The The Eastern Company (EML) shares are trading at higher $18.06.

To add more color to this target, the company’s high over the last year is $31.97 and the low is $15.28. Over the last 52 weeks, EML is down -43.50% while the S&P 500 is up 1.07%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, EML reported a profit of $14.66 million. The Eastern Company also saw revenues increase to $65.33 million. In addition, EML has free cash flow of $0.68 million as of 03-2020 The company’s EBITDA came in at $5.92 million which compares well with its peers.

EML booked profit margins of 5.70%, its Return on Equity (ROE) is 14.10%, and its Return on Assets is 5.70%. All told, it is clear that, EML needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. EML has a short ratio of 2.51 and outstanding shares of 6.24M.

Company Outlook

EML has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 10890.0 and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 2.33. The Eastern Company EML also noted assets of $279.94 million at the end of the last quarter. Investors should also keep an eye on sector updates as EML has historically followed its peers on positive news.

All told, The Eastern Company EML has strung together solid data and demonstrated underlying fundamentals. At its current valuation, EML represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

The Eastern Company EML is now commanding a market cap of 113.78M and a float of 5.91M. EML is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of EML stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in EML, either long or short, and we have not been compensated for this article.