It’s still a bull thesis, just subverted: Compania Cervecerias Unidas S.A. (CCU)

As of right now, Compania Cervecerias Unidas S.A. [CCU] is trading at $11.85, up 1.98%. An important factor to consider is whether the stock is rising or falling in short-term value. The CCU shares have gain 4.22% over the last week, with a monthly amount glided 13.83%, and seem to be holding up well over a long-time horizon.

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From an analyst’s perspective:

Compania Cervecerias Unidas S.A. [NYSE: CCU] stock has seen the most recent analyst activity on November 14, 2022, when HSBC Securities downgraded its rating to a Hold but kept the price target unchanged to $13 for it. Previously, JP Morgan upgraded its rating to Neutral on September 28, 2022, and elevated its price target to $13. On October 19, 2021, upgrade upgraded it’s rating to Neutral but maintained its price target of $16.80 on the stock. JP Morgan downgraded its rating to a Underweight but stick to its price target of $17.20 on October 01, 2021. Goldman initiated its recommendation with a Sell and recommended $17 as its price target on August 13, 2021. JP Morgan upgraded its rating to Neutral for this stock on June 15, 2021, but kept the price target unchanged to $20.60. In a note dated November 11, 2020, HSBC Securities upgraded an Hold rating on this stock.

Through the last year, Compania Cervecerias Unidas S.A.’s stock price ranged from $9.31 to $17.78. Currently, Wall Street analysts expect the stock to reach $14374.39 within the next 12 months. Compania Cervecerias Unidas S.A. [NYSE: CCU] shares were valued at $11.85 at the most recent close of the market. An investor can expect a potential return of 121202.87% based on the average CCU price forecast.

Analyzing the CCU fundamentals

For Compania Cervecerias Unidas S.A., (CCU), the latest quarter sales were 558.5 billion, which represents an 9.90% increase. Gross Margin for this corporation currently stands at +48.02% with Operating Margin at +12.88%, Pretax Margin comes in at +12.13%, and Net Margin reading is +8.02%.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 11.66 points at the first support level, and at 11.46 for the second support level. However, for the 1st resistance point, the stock is sitting at 11.97, and for the 2nd resistance point, it is at 12.08.

Compania Cervecerias Unidas S.A. [CCU] reported earnings per share of $0.43 for its fiscal quarter that ended on 3/30/2022. Based on the Wall Street analysts’ estimates, the company was expected to report earnings of $0.36/share, meaning a difference of $0.07 and a surprise factor of 19.40%. By comparison, the stated earnings for the previous quarter ended on 12/30/2021 were $0.48 per share as compared to estimates of $0.42 per share, a difference of $0.06 representing a surprise of 14.30%.

Ratios To Look Out For

It is important to note that Compania Cervecerias Unidas S.A. [NYSE:CCU] has a current ratio of 2.00. On the other hand, the Quick Ratio is 0.91, and the Cash Ratio is 0.37. Considering the valuation of this stock, the price to sales ratio is 1.03, the price to book ratio is 1.96 and the P/E (TTM) ratio is 13.91.