Natura &Co Holding S.A. (NTCO) shares are trading at lower $16.72.
To add more color to this target, the company’s high over the last year is $23.79 and the low is $7.89 while the S&P 500 is up 18.28%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, NTCO reported a profit of $860.08 million. Natura &Co Holding S.A. also saw revenues increase to $1.3 billion. In addition, NTCO has free cash flow of -$336.99 million as of 06-2020. The company’s EBITDA came in at $96.83 million which compares well with its peers.
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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. NTCO has a short ratio of 5.52 and outstanding shares of 626.66M.
NTCO has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.35 million and more growth is possible in the weeks ahead. Natura &Co Holding S.A. NTCO also noted assets of $11.39 billion at the end of the last quarter. Investors should also keep an eye on sector updates as NTCO has historically followed its peers on positive news.
All told, Natura &Co Holding S.A. NTCO has strung together solid data and demonstrated underlying fundamentals. At its current valuation, NTCO 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.
Natura &Co Holding S.A. NTCO is now commanding a market cap of 10.48B and a float of 378.21M. NTCO 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 NTCO 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 NTCO, either long or short, and we have not been compensated for this article.