Thursday, July 7, 2022

Itau Unibanco Holding S.A. (NYSE:ITUB) on the Path to Ruin

The Itau Unibanco Holding S.A. (ITUB) shares are trading at lower $4.94 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $6.82.

To add more color to this target, the company’s high over the last year is $9.61 and the low is $3.48. Over the last 52 weeks, ITUB is down -48.59% while the S&P 500 is down -5.76%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, ITUB reported a profit of $1.32 billion. Itau Unibanco Holding S.A. also saw revenues increase to $8.04 billion. In addition, ITUB has free cash flow of $6.76 billion as of 03-2020.

ITUB booked profit margins of 17.00%, its Return on Equity (ROE) is 18.10%, and its Return on Assets is 1.40%. All told, it is clear that, ITUB needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. ITUB has a short ratio of 0.92 and outstanding shares of 9.75B.

Company Outlook

ITUB has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 40.91 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.48. Investors should also keep an eye on sector updates as ITUB has historically followed its peers on positive news.

All told, Itau Unibanco Holding S.A. ITUB has strung together solid data and demonstrated underlying fundamentals. At its current valuation, ITUB represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Itau Unibanco Holding S.A. ITUB is now commanding a market cap of 44.36B and a float of 5.28B. ITUB is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of ITUB stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in ITUB, either long or short, and we have not been compensated for this article.

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