Our ALGO engine triggered a buy signal in Cimic Group yesterday on the ASX close at $38.20.
After posting a new 52-week high of $41.10 on May 24th, shares of CIM had pulled back over 8% to 37.50 before recovering into Friday’s close.
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A report that CIM is preparing to offload its 23% stake in Macmahon Holdings and restart its share buyback plan helped the stock find buyers.
This, combined with the credit rating upgrade from S&P in late May, gives CIM a positive outlook going forward.
At 23x earnings, the shares are mildly expensive, but the upside potential to $41.00 sets up a reasonable “buy/write” investment opportunity.
CIMIC Group
