Brazilian stock alert

BRAZ

CLOSING UPDATE: Localiza Rent A Car hits 52-week high third time in one month 21 July 2017 17:33 BRT

NEWS BITES - BRIC

This is an end of day Alert, produced after today's Brazilian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Localiza Rent A Car, Brazil's 4th largest commercial services company by market capitalisation, hit a 52-week high of R$52.0 today for the third time in the past one month and last traded at R$51.50. This brought its two-day rise to R$2.50 or 5.1%. Trading volume was 2.3 times average at the end of the day. Compared with the Brazil Index 50 which fell 45.2 points (or 0.4%) in the day, this represented a relative price increase of 4.9%.

Technical indicators complementing today's significant uptrend:

+ The positive 1.62 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The stock has outperformed 90% of the Brazilian market over the past 6 months.

+ In the last one month the stock has hit a new 52-week high thrice and in the last three months ten times, pointing to a significant uptrend.

+ The price climbed 4.7% in the last week and soared 21.8% in the last month.

+ The present value of BRL1,000 invested one year ago is R$1,541 [vs R$1,139 for the Brazil Index 50].

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Price/Sales of 2.6 [3.7]

Other Bullish Signals include:

+ The company is cash rich with Cash to Market Capitalisation at 14.8%.

+ Tobin's Q Ratio is 1.5. Compared with the rest of the market the stock is undervalued.

Note

Bearish Signals:

Net profit margin has averaged 10% in the last 3 years. This is lower than the sector average of 22% and suggests a low margin of safety.

As per the Du Pont analysis, Return on Equity of 18.6% is lower than sector average of 22.0%.

Overbought/Bearish:

The 1.0% discount to 12-month high of R$52.0 against the 74.3% premium to 12-month low of R$29.55 suggests the climb might be peaking.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Earnings of 27.5 [21.1]

Dividend yield of 1.4% [2.6%]

Return on Equity 18.6% [22.0%]

Return on Assets 5.5% [7.7%]

Return on Capital Employed 9.5% [15.1%]

Year-on-Year Earnings Growth of 2.4% [9.1%]

TODAY'S ALERTS

Afternoon Alert: Localiza Rent A Car hits 52-week high third time in one month

21 July 2017 13:08 BRT

Localiza Rent a Car SA (SA:RENT3) hit a 52-week high of R$52.0 today for the third time in the past one month and last traded at R$51.96. This brought its two-day rise to R$2.96 or 6.0%. Trading volume was 3.0 times average so far today.

Morning Alert: Localiza Rent A Car hits 52-week high third time in one month

21 July 2017 11:10 BRT

Localiza Rent a Car SA (SA:RENT3) hit a 52-week high of R$51.64 today for the third time in the past one month and last traded at R$51.35. This brought its two-day rise to R$2.35 or 4.8%. Trading volume was 2.2 times average so far today.

Localiza Rent a Car SA (SA:RENT3; SAO:RENT3; BZ:RENT3)

ISIN: BRRENTACNOR4

PermID: 4295860274

Source: www.BuySellSignals.com