Italian stock alert
CLOSING UPDATE: Recordati increases 0.5%, led Health care sector higher 20 October 2017 19:18 CEST
NEWS BITES - EUROPE
This is an end of day Alert, produced after today's Italian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).
Recordati, Italy's largest health care company by market capitalisation, has increased 0.5% to trade at EUR39.71 vs. the Health care sector which strengthened 387.3 points (or 0.2%) to 188,934.5. Representing a weighting of about 52.9% of the sector, the stock accounted for the gain. Trading volume was 76% of average at the end of the day. Compared with the FTSE MIB Index which rose 213.6 points (or 1%) in the day, this represented a relative price change of -0.5%.
Technical indicators complementing today's significant uptrend:
+ The positive 0.6 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.
+ In the Italian market, the stock's relative price strength percentile is improving at 63 for 6 months, 65 for 3 months and 77 for 1 month.
+ In the last three months the stock has hit a new 52-week high twelve times, pointing to a significant uptrend.
+ The present value of EUR1,000 invested one year ago is EUR1,494 [vs EUR1,304 for the FTSE MIB Index].
Fundamental measures by comparison with the sector average [in brackets] indicate:
+ Price/Earnings/Growth of 1.71 [1.9]
+ Return on Equity 26.3% [19.5%]
+ Return on Assets 15.2% [10.8%]
+ Return on Capital Employed 25.4% [19.2%]
Other Bullish Signals include:
+ Total Liabilities/EBITDA of 2.1 is comfortably below the Joseph Piotroski benchmark of <5.
+ Net profit margin has averaged 18.6% in the last 3 years. This is considered superior and suggests a high margin of safety.
+ As per the Du Pont analysis, Return on Equity is high at 26.3%. Also, this has improved from 22.9% last year.
The price decreased 0.2% in the last week.
Tobin's Q Ratio is 5.3. Compared with the rest of the market the stock is overvalued and ranks in the bottom 1% of stocks by value of Q Ratio.
The 1.6% discount to 12-month high of EUR40.35 against the 63.5% premium to 12-month low of EUR24.29 suggests the climb might be peaking.
Afternoon Alert: Recordati decreases 0.3%, leads Health care sector lower
20 October 2017 14:09 CEST
Recordati (MI:REC) has decreased 0.3% to trade at EUR39.43 vs. the Health care sector which weakened 275.9 points (or 0.1%) to 188,271.3. Representing a weighting of about 52.7% of the sector, the stock accounted for 88.9% of today's loss. Trading volume was 90% of average so far today.
Afternoon Alert: Recordati decreases 0.5%, leads Health care sector lower
20 October 2017 12:09 CEST
Recordati (MI:REC) has decreased 0.5% to trade at EUR39.32 vs. the Health care sector which weakened 918.4 points (or 0.5%) to 187,628.8. Representing a weighting of about 52.8% of the sector, the stock accounted for 57.2% of today's loss.
Recordati (MI:REC; BIT:REC; IM:REC)