Our Algo Engine triggered a “sell” signal in Webjet on Monday and after taking a closer look at the financials, there’s reason to add this one to your watch list.
It appears the market is now starting to factor in a meaningful deceleration in the revenue & earnings trajectory. Original expectations were for Webjet to continue growing revenue at 13 – 17% but headwinds in 2019 and 2020, make this unlikely.
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With the stock trading 32x FY18 and 25x 2019, we see little room for disappointment in upcoming earnings and future guidance.
Run a stop-loss above $12.50 and watch the short-term momentum indicators.
