Centrais Eletricas Brasileiras S.A. (EBR) shares are trading at higher $6.02.
To add more color to this target, the company’s high over the last year is $10.27 and the low is $2.95. Over the last 52 weeks, EBR is down -34.55% while the S&P 500 is up 14.92%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, EBR reported a profit of $1.3 billion. Centrais Eletricas Brasileiras S.A. also saw revenues increase to $2.07 billion. In addition, EBR has free cash flow of -$140.38 million as of 06-2020. The company’s EBITDA came in at $1.37 billion 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. EBR has a short ratio of 3.39 and outstanding shares of 1.57B.
EBR has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.63 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.54. Centrais Eletricas Brasileiras S.A. EBR also noted assets of $34.33 billion at the end of the last quarter. Investors should also keep an eye on sector updates as EBR has historically followed its peers on positive news.
All told, Centrais Eletricas Brasileiras S.A. EBR has strung together solid data and demonstrated underlying fundamentals. At its current valuation, EBR 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.
Centrais Eletricas Brasileiras S.A. EBR is now commanding a market cap of 9.44B and a float of 597.24M. EBR 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 EBR 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 EBR, either long or short, and we have not been compensated for this article.