Our ALGO engine triggered a buy signal for Ingham’s Group on December 18th at $3.42.
Now that Red Lea Chicken has been placed into voluntary administration, analysts estimate that ING’s 40% share of the domestic chicken market will grow by 1-2% and add 1.2% to EPS.
Based on those estimates, we see the share price rising into the $4.00 area over the medium-term.
Inghams Group reported 1H18 NPAT of $65 million versus $51 million the same time last year, whilst revenue of $1.2 billon was down 1.7%.
The company announced an interim dividend of $0.095
FY19 EPS growth is forecast to increase by 5.5% and DPS will increase slightly to $0.20, placing the stock on a forward yield of 5.6%.
After buying ING at lower levels, we’ve locked-in profit as we don’t consider the stock a core portfolio holding.
Both ING and IVC remain on our watch list following recent Algo Engine buy signals.
We recommend investors continue to monitor these names, as they are now approaching oversold levels.
Our Algo Engine has alerted us to the higher low formation in ING. Looking at recent technical levels, it’s likely the stock price will find buying support within the $3.30 – $3.45 range.
Our ALGO engine triggered a buy signal for Inghams Group at $3.42 into yesterday’s ASX close.
From a fundamental perspective, ING’s most recent 12-month earnings report showed the company made $59.1 million, which was 85% higher than the previous 12-month period.
The stock has traded as high as $3.90 on October 9th, and we expect to see good buying support in the $3.25 area for a move higher into Q1 2018.
ING is on the fringe of the stocks that we tend to focus on, however, given the recent Algo Buy signal at $3.05, we’ve now added this to our watch list.