Technical And Fundamental Outlook For Ambev S.A. (NYSE:ABEV)

Taking into account all relevant factors, Ambev S.A. (NYSE:ABEV) scores 24% Sell on the technical side. The share price is also flashing a Hold from the Barchart TrendSpotter trading system. Investors starting out on a short-term path of investing should know that short terms indicators for ABEV averaged 50% Buy with an average daily trading volume over the past 20 days at 14379645 shares. Those using medium-term investment strategies, the shares have overall a 0.5% Sell signal while the 50-day average daily volume remained almost 14554906 shares. It’s also important to note that the stock, whose average daily volume over the 100 days as of this piece was 17752350 shares, is signaling75% Sell for long term investors.

The stock is lingering around the initial support level of $4.42. After this, the following support is at the zone of $4.38. Up until the time the ABEV stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 48.45 on the daily chart, and this may be a cause for concern. In case the price goes below $4.38 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $4.53 level may cause a pull-back move approaching $4.6 mark.

Ambev S.A. (ABEV) is most likely going to rise 11.56 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $5.8 as 12-month high price target. This represents a whopping 28.89 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $5.5, which means a return possibility of 22.22 percent in comparison with the closing price of the stock of $4.5 in recent trading session. The lowest price set for the stock is $3.5 which is just above -22.22 percent from ABEV share’s price at the end of session.

In the recent trading session, Ambev S.A. (NYSE:ABEV) shares gained 0.9% or 0.04 points to reach at $4.5 with a thin trading volume of 3.089 million shares. It opened the trading session at $4.53, the shares rose to $4.56 and dropped to $4.45, the range by which the price of stock traded the whole session. The company now has a market cap of $70.2 billion and currently has 15.73 billion outstanding shares. Ambev S.A. (ABEV) stock has plunged -0.13 percent of market value in 21 trading days.

Stock analysts at Barclays cut their rating on shares of Ambev S.A. (NYSE:ABEV) from Equal Weight to a new rating of Underweight in their opinion released on December 03. Barclays analysts have downgraded their rating of ABEV shares from Overweight to Equal Weight in a separate flash note to investors on August 27. Analysts at JP Morgan issued an upgrade for the stock to Neutral from previous rating of Underweight, in a research note that dated back to July 26.

ABEV stock’s trailing 3-year beta is 0, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $0.18 share in the trailing 52 weeks. The stock’s value fallen -4.29 percent year to date (YTD) compared to a decline of -3.3 percent in 52 week’s period. The firm’s shares are still trading -15.32 percent below its 1-year high of $5.31 and 15.38 percent up from 52-week low of $3.90. The average consensus ranking on the company is 3, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a hold.

Ambev S.A. (ABEV) shares are trading at a P/E ratio of 26.36 times earnings posted in the trailing 12 months. The industry ABEV deals with has an average P/E of 23.04. Its P/B ratio is standing at 5.43X compared to the 3.29 industry average. It is additionally sporting a 5.34 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.5.

Past records have indicated that shares in Ambev S.A. declined on 11 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of ABEV’s Q4 earnings on February 27. Analysts are predicting revenue to suffer decline of -8.6 percent to $4.01B in the financial fourth quarter, while EPS will soar by about 0 percent to $0.06 per share. In the last quarter, it’s earnings of $0.04304 per share came better than the $0.03865, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $4.26B, topping the $3.96B analysts had expected. Earnings are seen to rise by 0 percent this year, 5.3 percent in the coming year and the trend continues by 6.1 percent every year in the next 5 years.