Craftsman Automation
Technicals:
The stock broke out after forming an inverse head and shoulders pattern at 2450 levels, which give it a target of about 3060 levels (9.3% from current price).
Recently the stock also took out its previous ATH @ 2778 and is consolidating / retesting that swing high with an increase in recent volume activity. My strategy here is to trail the stock until key MA’s (21/50 depending on broader market scenario) are not broken.
Fundamentals:
Craftsman belongs to the auto anc. / industrial engineering pack which is in focus and the sector as a whole is outperforming the broader market. Craftsman enjoys healthy OPM’s (24/25%) and is trading at a reasonable evaluation of 2.4xSales. The QoQ earnings are trending upwards and management commentary is positive as well. Attaching the latest concall here
Disc: Holding from lower levels with transactions recently.
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