Brazilian stock alert

BRAZ

Afternoon Alert: Itau Unibanco keeps rising: up 3.6% in 4 days 18 January 2018 14:58 BRST

NEWS BITES - BRIC

Itau Unibanco Holding (SA:ITUB4) extended its gains on Thursday, rising an additional 17.0 centavos (or 0.4%) to trade at R$46.96.

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

+ The positive 1.1 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the Brazilian market, the preference stock's relative price strength percentile is improving at 66 for 6 months, 69 for 3 months and 81 for 1 month.

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

Undervaluation:

+ Return on Equity 19.0% [13.1%]

+ Return on Assets 1.7% [1.3%]

Other Bullish Signals include:

+ The company is cash rich with Cash to Market Capitalisation at 68.7%.

+ Tobin's Q Ratio is 0.1. Compared with the rest of the market the preference stock is undervalued.

+ Net profit margin has averaged 11.9% in the last 3 years. This is better than the sector average of 10.8% and suggests a high margin of safety.

Note

Overbought/Bearish:

The 0.3% discount to 12-month high of R$47.12 against the 48.3% premium to 12-month low of R$31.67 suggests the climb might be peaking.

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

Overvaluation:

Price/Earnings of 13.1 [7.8]

Itau Unibanco Holding (SA:ITUB4; SAO:ITUB4; BZ:ITUB4)

ISIN: BRITUBACNPR1

PermID: 5001097110

Source: www.BuySellSignals.com