China Mobile Limited (CHL) shares are trading at lower $29.83 and the avg recommendation for the stock is Strong Buy, while the current analyst price target stands at $48.69.
To add more color to this target, the company’s high over the last year is $44.93 and the low is $29.70. Over the last 52 weeks, CHL is down -21.11% 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
CHL booked profit margins of 14.20%, its Return on Equity (ROE) is 9.80%, and its Return on Assets is 6.50%. All told, it is clear that, CHL 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. CHL has a short ratio of 1.50 and outstanding shares of 4.10B.
CHL has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.31 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 3.97. China Mobile Limited CHL also noted assets of $243.33 billion at the end of the last quarter. Investors should also keep an eye on sector updates as CHL has historically followed its peers on positive news.
All told, China Mobile Limited CHL has strung together solid data and demonstrated underlying fundamentals. At its current valuation, CHL 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 Mobile Limited CHL is now commanding a market cap of 125.20B and a float of 1.12B. CHL 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 CHL 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 CHL, either long or short, and we have not been compensated for this article.