Brazilian stock alert

BRAZ

Afternoon Alert: Cielo lifts 2.2%, leads Financial index higher 18 January 2018 14:58 BRST

NEWS BITES - BRIC

Cielo SA (SA:CIEL3) has lifted 2.2% to trade at R$26.06 vs. the Financial index which strengthened 34.1 points (or 0.4%) to 8,750.1. Representing a weighting of about 7.1% of the index, the stock accounted for 40.3% of today's gain. The shares have outperformed 96% of the market in the past week. Trading volume was 2.2 times average so far today.

Current indications of bullish signals that support the trend in the unusual trading:

+ The positive 0.46 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The price jumped 7.8% in the last week and soared 10.9% in the last month.

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

Undervaluation:

+ Return on Equity 47.2% [18.0%]

+ Return on Assets 13.7% [7.8%]

+ Return on Capital Employed 31.8% [18.8%]

+ Price/Earnings/Growth of 1.38 [2.3]

+ Year-on-Year Earnings Growth of 14.2% [9.8%]

+ Price/Earnings of 17.7 [22.2]

Note

Bearish Signals:

In the last three months the stock has hit a new 52-week low once.

Tobin's Q Ratio is 2.3. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

Overbought/Bearish:

The 0.9% discount to 12-month high of R$26.29 against the 29.3% premium to 12-month low of R$20.15 suggests the climb might be peaking.

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

Overvaluation:

Price/Sales of 4.7 [3.5]

Cielo SA (SA:CIEL3; SAO:CIEL3; BZ:CIEL3)

ISIN: BRCIELACNOR3

PermID: 4297539270

Source: www.BuySellSignals.com