Wipro Limited (WIT) shares are trading at higher $5.37 and the avg recommendation for the stock is Moderate Sell, while the current analyst price target stands at $4.93.
To add more color to this target, the company’s high over the last year is $5.50 and the low is $2.52. Over the last 52 weeks, WIT is up 48.75% while the S&P 500 is up 18.49%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, WIT reported a profit of $622.0 million. Wipro Limited also saw revenues increase to $2.06 billion. In addition, WIT has free cash flow of $1.06 billion as of 09-2020. The company’s EBITDA came in at $474.0 million which compares well with its peers.
WIT booked profit margins of 15.70%, its Return on Equity (ROE) is 16.80%, and its Return on Assets is 11.50%. All told, it is clear that, WIT 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. WIT has a short ratio of 7.35 and outstanding shares of 5.69B.
Company Outlook
WIT has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.19 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.23. Wipro Limited WIT also noted assets of $11.9 billion at the end of the last quarter. Investors should also keep an eye on sector updates as WIT has historically followed its peers on positive news.
All told, Wipro Limited WIT has strung together solid data and demonstrated underlying fundamentals. At its current valuation, WIT 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.
Wipro Limited WIT is now commanding a market cap of 28.81B and a float of 1.69B. WIT 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 WIT 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 WIT, either long or short, and we have not been compensated for this article.