At the close of trade yesterday, our ALGO engine triggered a sell signal on CSR at $4.58.
This is the second sell signal in just over a month as shares of the building supply company are still trading within a “lower high” formation dating back the all-time high price reached at $5.25 on May 9th.
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Fundamentally, much of the recent price rise could be attributed to the two hurricanes which passed through the USA, but that looks to have run its course.
Further, earnings growth per share for CSR is expected to fall up to 14% over the next three years.
With the recent EPS at 35 cents, this expected contraction could drag EPS down to 30 cents.
As such, our downside target over the medium-term is $3.70.
CSR
