CSL Limited (ASX:CSL) HEFFX Highlights

CSL Limited (ASX:CSL) HEFFX Highlights

CSL Limited (ASX:CSL) HEFFX Highlights

  • Analysts are predicting good growth prospects for CSL over the next three years. The estimates for earnings per share range from $3.81 to $4.72 with an average expectation of 53.1% growth.
  • During the same time revenue is predicted to grow from $6.45 Billion to $9.12 Billion in 2020 and profit is predicted to grow from $1.33 Billion to $2.00 Billion in 2020, roughly growing 1.5x. Margins are predicted to be extremely healthy during this time as well.
  • CSL has been performing exceptionally based on an ROE of 46.2%, this is above the average for the industry of 44.66%. This is expected to improve even further with the stock estimated to have an outstanding ROE of 41.1%.

CSL Limited is a biotherapeutics company that develops and delivers biotherapies. The Company’s principal activities are research, development, manufacture, marketing and distribution of biopharmaceutical and allied products. Its segments include CSL Behring, Seqirus and CSL Intellectual Property. The CSL Behring segment manufactures, markets and develops plasma therapies (plasma products and recombinants). The Seqirus segment manufactures and distributes non-plasma biotherapeutic products. Seqirus manufactures, sells and distributes a range of vaccines, antivenoms and other pharmaceutical products in Australia and New Zealand. It also manufactures and markets in vitro diagnostic products through Seqirus immunohematology. The CSL Intellectual Property segment is engaged in licensing of intellectual property generated by the Company to unrelated third parties. The Company has facilities in Australia, Germany, Switzerland, the United Kingdom and the United States.

Overall, the bias in prices is: Upwards.

Short term: Prices are stalling.

Intermediate term: Prices are ranging.

The projected upper bound is: 135.47.

The projected lower bound is: 129.42.

The projected closing price is: 132.44.

CSL FPO closed up 0.250 at 132.250. Volume was 11% below average (neutral) and Bollinger Bands were 38% narrower than normal.

Open         High        Low           Close        Volume
131.810    132.470    131.810    132.250    843,910

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period    50-period    200-period
Close:                       131.79           130.00        112.57
Volatility:                19                  15                  27
Volume:                   940,032      840,762       998,413

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary
CSL FPO is currently 17.5% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of CSL.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on CSL.AX and have had this outlook for the last 9 periods.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 51.9219. This is not an overbought or oversold reading. The last signal was a buy 1 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 53.10. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 16 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 31. This is not a topping or bottoming area. The last signal was a buy 2 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 15 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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