BW: Is a Breakdown in the Charts for Babcock & Wilcox? –

This post was originally published on this site

Babcock & Wilcox Enterprises, Inc. (BW) provides advanced fossil and renewable power generation and environmental equipment. B&W’s technologies support a circular economy, diverting waste from landfills to use for power generation and replacing fossil fuels, while recovering metals and reducing emissions

The company had a solid quarter where revenue rose 49.8% year over year and net income increased to $3.1 million, compared to a loss of $18.1 million in the same quarter last year. BW launched its ClimateBright platform in May with a pipeline of potential carbon capture and hydrogen combustion opportunities.

The firm had $144 million in cash as of the most recent quarter compared to only $3 million in short-term debt. Analysts expect sales to rise 33.8% for the year. However, earnings are expected to fall 95.1% in the current quarter.

The stock appears slightly overvalued with a forward P/E of 23.64. The stock was showing bullish momentum from the end of last year into March of this year, but performance has been mixed since, as shown in the chart below.

Take a look at the 1-year chart of BW below with added notations:

Chart of BW provided by TradingView

BW has tested the $6.50 level (green) as support several times over the course of the past six months. The stock has fallen back down to that support again.

 Click Here to Read the Greatest Trading Book Ever Written

A break of $6.50 could mean much lower prices for the stock.  Therefore, if the stock were to break below the support, a short position could be entered.

Want to Discover More Great Trades?

What is better than finding the 1 attractive stock in this article?

Discovering 5 timely trades…like the ones in this new special report. Click below to claim your free copy now!

5 Stocks Ready to BREAKOUT!

BW shares were unchanged in premarket trading Monday. Year-to-date, BW has gained 86.61%, versus a 20.70% rise in the benchmark S&P 500 index during the same period.

About the Author: Christian Tharp

I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing. More…

More Resources for the Stocks in this Article

This post was originally published on *this site*