Hive Blockchain Technologies Ltd (BER:HBF) is set to release its earnings on the 1st of June. This little-known company is set to surprise the market. EPS for the last full financial year was $0.81. Current projections indicate that the EPS could be as much as $2.59.
The stock is trading at a valuation of $5.49. The PE is only 2.05. Our analysis shows that the stock is highly discounted. Being a penny stock also means that the valuation is highly volatile. By trading the volatility, investors can easily double or triple returns in a short time.
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Over the last 52 weeks, the stock hit a high of $32. The lowest was at $4.55. Hive Blockchain is trading at some of the lowest valuations. The likelihood of the stock gaining is higher than the probability of losing. Analysts have set a price target of $12 for the stock.
There are other considerations. The operations of the company are clustered in the cryptocurrency mining business. It means that whether the cryptocurrencies are gaining or losing, Hive Blockchain will continue earning.
For investors who are concerned about fundamental performance, the ROE stands at 64%. The ROA is at 56.33%. At these levels, the company outperforms many of the traditional value stocks. The story reads better when considering that Hive Blockchain is also a growth stock.
Hive Blockchain Technologies triggers buy signal
Hive Blockchain is oversold ahead of the earnings release. The RSI of 29 has already triggered a buy signal. The stock is also trading at the bottom limit of the trend channel. Additionally, the price is at one of the lowest levels hence significant support.
Summary
This analysis strongly recommends buying Hive Blockchain ahead of the earnings release. The stock will surprise the market. Valuation will double or even triple after the earnings release.
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