Investing in Methanex now could return 30% by the end of July

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By:

Motiur Rahman

on
May 28, 2022

Methanex is the largest methane trader in the world where it sets its own prices.

Strong fundamentals and technical indicators show that the stock is a strong buy.

From the current price of $50, the target is $60 at the end of June and $68 at the end of July.

Methanex Corporation (NASDAQ:MEOH) is the world’s largest producer and seller of methanol. The company literally sets the prices of the product at the end of each month. The demand is growing. In the process, it is making Methanex Corporation highly attractive to investors.

The stock is trading at $50.71. It has an EPS of $6 and a PE of 7.57. The ROE is high at 30%, while the ROA is 8%. Additionally, Methanex has a dividend yield of 1.02%. The company is projected to beat market expectations by more than 10.45% in upcoming earnings.


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Methanex Corporation has been boosting its share buyback program. The company considers its shares currently undervalued. The view is supported by various analysts. Zacks Research rates Methanex Corporation a strong buy. The company is a good candidate for value and growth investment styles.

Methanex Corporation is on a predictable upward channel

Source – TradingView

Technical analysis shows that Methanex is on a predictable upward trend. The long-term 200-day moving average is trending below all short-term averages. The stock is also at a significant buying signal where MA-10 interacts with MA-20. The stock is therefore projected to rally towards the $60 price target.

This analysis projects that the stock will rise to $60 before the end of June. It will rally further up on earnings release at the end of July. Investors taking a position now could make about 30% gains in the next two months.

Summary

Methanex Corporation is a strong buy. Having control over the methanol market makes Methanex highly attractive. Financial analysis shows a fundamentally strong stock.

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