China Life Insurance Company Limited (NYSE:LFC) is -0.5 points lower today and the only thing that matters is where they go from here. You simply have to look deeper than the share price and explore the fundamentals and future growth potential. The stock value has plummeted by nearly -3.94% to $12.2 from its previous close of $12.7. Does this decline mean it the best stock to buy right now? The shares seem to have an active trading volume day with a reported 309302 contracts so far this session. LFC shares had a relatively better volume day versus average trading capacity of 494.31 thousand shares, but with a 1.76 billion float and a -9.67% run over a week, it‚Äôs definitely worth keeping an eye on. The one year price forecast for LFC stock indicates that the average analyst price target is $17.35 per share. This means the stock has a potential increase of 42.21% from where the LFC share price has been trading recently which is between $12.62 and $12.86.
The most recent news story about the stock that appeared in Yahoo Finance‚Äės news section was titled ‚ÄúAsian markets plunge as U.S.-China trade deal appears in jeopardy‚ÄĚ and dated May 05, 2019.
During the recent trading session for China Life Insurance Company Limited (NYSE:LFC), the company witnessed their stock drop by $-1.94 over a week and tumble down $-1.55 from the price 20 days ago. When compared to their established 52-week high of $14.67, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 06/07/18. The recent low of $9.85 stood for a -16.84% since 10/30/18, a data which is good for most investors who are looking to take advantage of the stock‚Äôs recent rise. A beta of 1.37 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.
Looking at the current readings for China Life Insurance Company Limited, the two-week RSI stands at 27.44. This figure suggests that LFC stock, for now, is overbought, meaning that the shares are not stable in terms of price movement. The stochastic readings, on the other hand, based on the current LFC readings is similarly very revealing as it has a stochastic reading of 3.52% at this stage. This figure means that LFC share price today is being overbought.
Technical chart claims that China Life Insurance Company Limited (LFC) would settle between $12.83/share to $12.97/share level. However, if the stock price goes below the $12.59 mark, then the market for China Life Insurance Company Limited becomes much weaker. If that happens, the stock price might even plunge as low as $12.49 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -0.96. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at Goldman lowered their recommendation on shares of LFC from Neutral to Sell in their opinion released on March 05. HSBC Securities analysts have lowered their rating of China Life Insurance Company Limited (NYSE:LFC) stock from Buy to Hold in a separate flash note issued to investors on January 22. Analysts at Goldman released an upgrade from Sell to Neutral for the stock, in a research note that dated back to December 18.
LFC equity has an average rating of 1, with the figure leaning towards a bullish end. 1 analysts who tracked the company were contacted by Reuters. Amongst them, 0 rated the stock as a hold while the remaining 1 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 1 analysts rated China Life Insurance Company Limited (NYSE:LFC) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company‚Äôs stock.
Moving on, LFC stock price is currently trading at 14.94X forward 12-month Consensus EPS estimates, and its P/S ratio is 1.21 while for the average stock in the same group, the multiple is 1.3. China Life Insurance Company Limited current P/E ratio of 27.45 means it is trading at a premium against its industry‚Äôs 13.44. In the past 5 years, this ratio for the stock has been fluctuating between 16.91 and 52.74.