Maxar Technologies Inc. (MAXR) is an integrated space and geospatial intelligence company with a full range of space technology solutions for commercial and government customers including satellites, Earth imagery, geospatial data and analytics.
Its WorldView Legion program and new offerings in the Earth Intelligence segment, such as 3D technology are supporting growth. Plus, the company should leverage its satellite imagery capabilities and satellites to provide imagery data for Internet of Things (IoT) devices.
Its balance sheet is underwhelming with only $10 million in cash, compared with $13 million in short-term debt. From a growth standpoint, its EBITDA has grown an average of 53.5% per year over the past three years, but fell 27.1% over the past year.
The stock also looks overvalued with a trailing P/E of 42.72 and a forward P/E of 39.84. MAXR has mainly shown bearish momentum since late June. This is evident in the chart below.
Take a look at the 1-year chart of MAXR below with added notations:
Chart of MAXR provided by TradingView
MAXR has formed a major level of support at $27.5 (green) over the past six months. The stock has repeatedly rallied off that $27.5 mark, but it has fallen back down to that level again. If MAXR were to break support, lower prices will likely follow from there.
A trader could enter a short position if MAXR is to break the $27.50 support level, with a protective stop order placed above the entry level.
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MAXR shares were trading at $27.40 per share on Friday morning, down $0.13 (-0.47%). Year-to-date, MAXR has declined -28.94%, versus a 23.07% 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...
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