China Unicom (Hong Kong) Limited (CHU) shares are trading at higher $8.27 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $9.43.
To add more color to this target, the company’s high over the last year is $11.08 and the low is $5.08. Over the last 52 weeks, CHU is down -25.36% while the S&P 500 is up 0.22%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, CHU reported a profit of $480.49 million. China Unicom (Hong Kong) Limited also saw revenues increase to $10.58 billion. In addition, CHU has free cash flow of $0.0 as of 03-2020. The company’s EBITDA came in at $480.49 million which compares well with its peers.
CHU booked profit margins of 3.80%, its Return on Equity (ROE) is 3.50%, and its Return on Assets is 2.00%. All told, it is clear that, CHU needs to be on your watchlist.
Find out when CHU reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.
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. CHU has a short ratio of 2.31 and outstanding shares of 3.06B.
CHU has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.88 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.57. Investors should also keep an eye on sector updates as CHU has historically followed its peers on positive news.
All told, China Unicom (Hong Kong) Limited CHU has strung together solid data and demonstrated underlying fundamentals. At its current valuation, CHU 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.
China Unicom (Hong Kong) Limited CHU is now commanding a market cap of 24.66B and a float of 613.99M. CHU 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 CHU 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 CHU, either long or short, and we have not been compensated for this article.