$JSESHP - Shoprite: Fully Valued Or More Upside?
Shoprite released a very good Operational update for the six months ended 1 January 2023 yesterday, a must read for anyone looking to trade or invest in this stock.
As pleasing as this update was, a look at the charts shows a couple of red flags one must be cognizant of.
The Elliot Wave structure suggests that the stock is trading in wave (5) and so far looks to forming and ending diagonal which is a terminal pattern.
Never one to swear by valuations but I build my own models and reference others too, it is interesting to note the following.
Investing.com Pro has a valuation range of R248,38-260,86 and Yahoo finance has a fair value of R264,00.
With the share price currently trading around R235,00 it is wise to question oneself as to whether or not SHP is almost fully valued by the market?
With that technical and valuation picture in mind, i am neutral SHP even though there could still be more short-term upside to complete wave (5).
As pleasing as this update was, a look at the charts shows a couple of red flags one must be cognizant of.
The Elliot Wave structure suggests that the stock is trading in wave (5) and so far looks to forming and ending diagonal which is a terminal pattern.
Never one to swear by valuations but I build my own models and reference others too, it is interesting to note the following.
Investing.com Pro has a valuation range of R248,38-260,86 and Yahoo finance has a fair value of R264,00.
With the share price currently trading around R235,00 it is wise to question oneself as to whether or not SHP is almost fully valued by the market?
With that technical and valuation picture in mind, i am neutral SHP even though there could still be more short-term upside to complete wave (5).
