What’s wrong with Compania Cervecerias Unidas S.A. (CCU) today

Stay Ahead of Wall Street. Find out what is happening to Compania Cervecerias Unidas S.A. (NYSE:CCU) stock today? Its price is nose-diving -0.53 points, trading at $18.08 levels, and is down -2.85% from its previous close of $18.61. The shares seem to have an active trading volume day with a reported 107331 contracts so far this session. CCU shares had a relatively better volume day versus average trading capacity of 306.1 thousand shares, but with a 57.45 million float and a 0.54% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for CCU stock indicates that the average analyst price target is $23.37 per share. This means the stock has a potential increase of 29.26% from where the CCU share price has been trading recently.

During the recent trading session for Compania Cervecerias Unidas S.A. (NYSE:CCU), the company witnessed their stock drop by $-0.37 over a week and tumble down $-1.16 from the price 20 days ago. When compared to their established 52-week high of $29.48, the high they recorded in their recent session happens to be higher. Their established 52-week high was attained by the company on 01/04/19. The recent low of $17.66 stood for a -38.67% since 01/27/20, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 0.57 is also allocated to the stock. Since the beta is less than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Compania Cervecerias Unidas S.A., the two-week RSI stands at 40.7. This figure suggests that CCU stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current CCU readings is similarly very revealing as it has a stochastic reading of 54.76% at this stage. This figure means that CCU share price today is being neutral.

Technical chart claims that Compania Cervecerias Unidas S.A. (CCU) would settle between $18.73/share to $18.85/share level. However, if the stock price goes below the $18.49 mark, then the market for Compania Cervecerias Unidas S.A. becomes much weaker. If that happens, the stock price might even plunge as low as $18.36 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.06. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Goldman lowered their recommendation on shares of CCU from Buy to Neutral in their opinion released on January 22. HSBC Securities analysts bumped their rating on Compania Cervecerias Unidas S.A. (NYSE:CCU) stock from Reduce to Hold in a separate flash note issued to investors on June 01. Analysts at Goldman released an upgrade from Neutral to Buy for the stock, in a research note that dated back to March 19.

CCU equity has an average rating of 3.2, with the figure leaning towards a bullish end. 5 analysts who tracked the company were contacted by Reuters. Amongst them, 2 rated the stock as a hold while the remaining 3 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 0 analysts rated Compania Cervecerias Unidas S.A. (NYSE:CCU) as a buy or a strong buy while 3 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, CCU stock price is currently trading at 21.2X forward 12-month Consensus EPS estimates, and its P/E ratio is 9.3 while for the average stock in the same group, the multiple is 27.7. Compania Cervecerias Unidas S.A. current P/B ratio of 2.1 means it is trading at a discount against its industry’s 3.5.

Compania Cervecerias Unidas S.A. (CCU)’s current-quarter revenues are projected to climb by nearly -15.6% to hit $683140, based on current consensus estimate. The firm’s full-year revenues are expected to expand by over -16% from $2.78 billion to a noteworthy $2.33 billion. At the other end of the current quarter income statement, Compania Cervecerias Unidas S.A. is expected to see its adjusted earnings surge by roughly 61.1% to hit $0.29 per share. For the fiscal year, CCU’s earnings are projected to climb by roughly -68% to hit $0.83 per share.