Is Companhia Brasileira de Distribuição (CBD)’s Fuel Running Low? The Stock Formed Bearish Wedge Down

July 13, 2018 - By Darrel Chase

The stock of Companhia Brasileira de Distribuição (CBD) formed a down wedge with $18.61 target or 8.00 % below today’s $20.23 share price. The 6 months wedge indicates high risk for the $5.43 billion company. If the $18.61 price target is reached, the company will be worth $434.16 million less.
Falling wedges are poor performers for bullish breakouts and are tricky moments to trade. Investors must be aware that the break even failure rate for up or down breakouts is: 11% and 15%. The average rise is 32% and the decline is 15%. The falling wedges has high throwback and pullback rate: 56%, 69% and the percent of wedges meeting target is not very high.

The stock increased 4.55% or $0.88 during the last trading session, reaching $20.23. About 1.04M shares traded or 109.79% up from the average. Companhia Brasileira de Distribuição (NYSE:CBD) has risen 3.13% since July 13, 2017 and is uptrending. It has underperformed by 9.44% the S&P500.

Analysts await Companhia Brasileira de Distribuição (NYSE:CBD) to report earnings on July, 24 after the close. They expect $0.15 EPS, down 66.67 % or $0.30 from last year’s $0.45 per share. CBD’s profit will be $40.24 million for 33.72 P/E if the $0.15 EPS becomes a reality. After $0.16 actual EPS reported by Companhia Brasileira de Distribuição for the previous quarter, Wall Street now forecasts -6.25 % negative EPS growth.

More news for Companhia Brasileira de Distribuição (NYSE:CBD) were recently published by: Benzinga.com, which released: “Mid-Morning Market Update: Markets Mostly Flat; JPMorgan Profit Beats Estimates” on July 13, 2018. Globenewswire.com‘s article titled: “Factors of Influence in 2018, Key Indicators and Opportunity within Companhia Brasileira de Distribuicao, SiteOne …” and published on June 15, 2018 is yet another important article.

Companhia Brasileira de Distribuição engages in the retail of food, clothing, home appliances, electronics, and other products through its chain of hypermarkets, supermarkets, specialized stores, and department stores primarily in Brazil. The company has market cap of $5.43 billion. The firm operates through two divisions, Food Retail; and Cash and Carry. It has a 31.61 P/E ratio. The Food retail segment sells non-perishable food products, beverages, fruits, vegetables, meat, breads, cold cuts, dairy products, cleaning products, disposable products, and personal care products; and non-food products, which include clothing items, baby items, shoes and accessories, household articles, books, magazines, CDs and DVDs, stationery, handcrafts, toys, sports and camping gears, furniture, mattresses, pet products, and gardening products, as well as electronic products, such as personal computers, software, computer accessories, and sound and image systems.

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