NESCO Receives 'Sell' Rating from MarketsMOJO, Despite Strong Historical Performance

NESCO, a midcap company in the capital goods industry, has recently received a 'Sell' rating from MarketsMOJO on October 21, 2024. This downgrade is based on the company's poor long-term growth, with net sales growing at an annual rate of 13.64% and operating profit at 11.37% over the last 5 years.
In addition, NESCO has recently declared negative results for the first time in 9 consecutive quarters. Its PBT LESS OI(Q) has fallen by -20.8%, PAT(Q) by -23.1%, and NET SALES(Q) by -16.6%. This has led to a ROE of 15.2 and a very expensive valuation with a 3.1 price to book value. However, the stock is currently trading at a discount compared to its average historical valuations.

Despite generating a return of 39.21% in the past year, NESCO's profits have only risen by 13.9%, resulting in a PEG ratio of 1.4. The company also has a low debt to equity ratio (avg) of 0 times.

On a technical level, the stock is currently in a mildly bullish range and has multiple bullish indicators such as MACD, KST, DOW, and OBV. The majority shareholders of NESCO are the promoters, and the company has a track record of market-beating performance in both the long term and near term. In fact, it has outperformed BSE 500 in the last 3 years, 1 year, and 3 months.

While NESCO may have some challenges to overcome in the short term, its strong financials and market-beating performance make it a company worth keeping an eye on in the long run. Investors should carefully consider all factors before making any investment decisions.