Summary
- BYD Company Limited, Warren Buffet's favorite Chinese auto stock, has shown strong technical buy signals and consistent price appreciation, gaining 16.46% since 9/5.
- The company operates in automobiles, batteries, and mobile handset components, with significant growth in revenue expected this year and next.
- Barchart's technical indicators show 100% buy signals, a 16.69% gain in the last year, and a Relative Strength Index of 77.40%.
- Analysts are bullish with 6 strong buy opinions, but caution is advised due to the stock's volatility and speculative nature.
The Chart of the Day belongs to Warren Buffet's favorite Chinese stock auto maker BYD (BYDDY) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 9/5 the stock gained 16.46%.
BYD Company Limited, together with its subsidiaries, engages in automobiles and batteries business in the People's Republic of China, Hong Kong, Macau, Taiwan, and internationally. The company operates in two segments: Mobile Handset Components, Assembly Service and Other Products; and Automobiles and Related Products and Other Products. The Mobile Handset Components, Assembly Service and Other Products segment manufactures and sells mobile handset components, such as housings and electronic components; and offers assembly services. The Automobiles and Related Products and Other Products segment is involved in the manufacturing and sale of automobiles, and auto-related molds and components; rail transport and related business; and provision of automobile leasing and after sales services, automobile power batteries, lithium-ion batteries, photovoltaic, and iron battery products. The company develops urban rail transportation business. BYD Company Limited was founded in 1995 and is headquartered in Shenzhen, China.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 100% technical buy signals
- 29.27+ Weighted Alpha
- 16.69% gain in the last year
- .31- 60 month Beta
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 11 new highs and up 21.34% in the last month
- Relative Strength Index 77.40%
- Technical support level at $70.19
- Recently traded at $70.54 with 50 day moving average of $59.46
Fundamental Factors:
- Market Cap $105 billion
- P/E 21.93
- Dividend yield 1.03%
- Revenue expected to grow 21.70% this year and another 16.10% next year
- Earnings are estimated to decrease 9.90% this year, increase 12.90% next year and continue to compound at an annual rate of 14.00% for the next 5 years
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall Street analyst gave 6 strong buy opinions on the stock
- Analysts' price targets are between $40 and $73
- MorningStar gives the stock its average rating of 3 with a Fair Value of $66 or 7% over valued
- 2,650 investors monitor the stock on Seeking Alpha
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
