China HGS Real Estate Inc. (HGSH) shares are trading at higher $2.58.
To add more color to this target, the company’s high over the last year is $4.40 and the low is $0.48. Over the last 52 weeks, HGSH is up 66.86% while the S&P 500 is up 18.53%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, HGSH reported a profit of -$2.46 million. China HGS Real Estate Inc. also saw revenues decrease to $3.02 million. In addition, HGSH has free cash flow of $1.81 million as of 06-2020. The company’s EBITDA came in at -$2.45 million which compares well with its peers.
HGSH booked profit margins of -3.30%, its Return on Equity (ROE) is -0.50%, and its Return on Assets is -0.20%. All told, it is clear that, HGSH 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. HGSH has a short ratio of 0.25 and outstanding shares of 90.10M.
HGSH has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 20.83 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.01. Investors should also keep an eye on sector updates as HGSH has historically followed its peers on positive news.
All told, China HGS Real Estate Inc. HGSH has strung together solid data and demonstrated underlying fundamentals. At its current valuation, HGSH 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 HGS Real Estate Inc. HGSH is now commanding a market cap of 39.60M and a float of 6.79M. HGSH 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 HGSH 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 HGSH, either long or short, and we have not been compensated for this article.