BYD shares: A chance to win?  ()

BYD shares: A chance to win? ()


Byd shares are listed on the Hong Kong Stock Exchange on 27 July 2022, 7:46 pm at a price of HKD 289. Byd’s share is assigned to the “Automotive Manufacturers” segment.

In an internal analysis, we rated Byd based on the 7 most important factors based on current data. This results in a “Buy”, “Hold” or “Sell” rating. These 7 separate individual factors then lead to a combined overall assessment of the stock’s prospects.

1. Fundamentals: With a price-to-earnings (P/E) ratio of 216.58, based on today’s prices, Byd’s stock is 652 percent higher than comparable companies in the automotive industry (28.82). This indicator, in turn, indicates undervaluation. From a fundamental analysis point of view, this results in a “Sell” rating.

2. Technical Analysis: Trend-following indicators should show whether a security is currently in an uptrend or downtrend (see Wikipedia). Moving averages are one indicator, we are looking at the 50 and 200 day averages here. First, let’s look at the longest moving average of the last 200 trading days. For Byd shares, this is currently HKD 263.71. The final closing price (289 HKD) is therefore higher (+9.59 percent deviation in comparison). On this basis, Byd gets a “buy” rating. Now looking at the short-term 50-day moving average: At this value (HKD 291), the last close is close to the moving average (-0.69 percent). In this case, therefore, the Byd section is rated differently, which is a “hold” rating. Overall, Byd is rated “buy” based on trend-following indicators.

3. Relative Strength Index: With the help of the Relative Strength Index (RSI), an indicator from technical analysis, information can be provided whether a security is “overbought” or “oversold”. To do this, the up and down movements of the underlying asset are compared over time. Let’s take a look at the past 7-day RSI for Byd stock: it is currently 64.77. Therefore, the security is neither overbought nor oversold, and therefore we assign a “hold” rating. The RSI for the past 25 trading days is less volatile than the RSI7 and adds a longer-term perspective to our analysis. As with RSI7, Byd is neither overbought nor oversold on this basis (value: 53.53). Hence the security is also classified as “Hold” by RSI25. Overall, analysis of RSIs on Byd therefore yields a “hold” rating.

Buy, hold or sell – your BYD analysis is written 07/28 gives the answer:

How will BYD grow now? Is entry worth it or should investors sell instead? Find the answers to these questions and why you need to act now in the current BYD analysis.