China Mobile handles the coronavirus threat very well, and CHL’s profitability is very good
Total revenues increased by 1.4% year-on-year in Q3, while net income decreased by only 0.3% year-on-year
Analysts remain “bullish” on China Mobile and this share could be a good “buying opportunity
The U.S. elections are being watched closely, according to the latest news Biden is taking the lead in Georgia, but the U.S. presidential election is progressing, with the winner not yet officially announced. Joe Biden has a good chance to become the 46th president and the Biden camp hopes to cross the threshold of 270 very soon.
The shares of China Mobile (NYSE: CHL) rose from $30.6 to $32.6 in less than a few days, and the current price is $32.5. The main trend of this stock remains bearish and China Mobile is still unable to break through the $35 resistance level.
Fundamental analysis: China Mobile stock is not overvalued
China Mobile offers mobile telecommunications in China. The company serves 950 million mobile customers and 187 million wired broadband customers. China Mobile deals very well with the threat of the corona virus and draws the attention of investors to this uncertainty in the financial markets.
China Mobile recently released its Q3 earnings results, with total revenues up 1.4% year-over-year, while net profit in Q3 was down only 0.3%.
China Mobile’s shares have extended their correction from the recent highs above USD 38 recorded in the third week of August. Nevertheless, there is no reason to panic and as long as the price of China Mobile shares remains above USD 30, the shares will remain in the “buy” zone.
China Mobile shares could be a good investment opportunity and most financial analysts expect their price to rise significantly in the coming years. China Mobile’s profitability is better than that of its competitors, the company has a stable dividend and intends to maintain dividend payments.
China Mobile’s revenues have grown steadily over the last decade and the company has distributed more than $24 billion in dividends to its shareholders over the last three years. If we compare the total equity of $159 billion and the market capitalization of $131 billion, we can see that this stock is not overvalued and that now might be a good time to buy China Mobile shares.
Technical analysis: $30 is a very strong support.
Data source: tradingview.com
If we take a look at the chart above (period of one year), we can see that the price of this stock has dropped from $44.9 to $30.12 and started to rise. On this chart I have marked important resistance and support levels.
The important support levels are $32 and $30, $35 and $40 represent the resistance levels. If the price jumps above $35, it would be a “buy” signal and we have the open path to $38.
A rise above $40 supports the continuation of the bullish trend and the next target price could be around $50. If the price falls in the coming period, any price in the $20-30 range could be a very good opportunity to invest in China Mobile stocks.
Summary
The U.S. elections are being watched closely, according to the latest news Biden is taking the lead in Georgia, but the U.S. presidential election is progressing, with the winner not yet officially announced. China Mobile has recently released the results of 3rd quarter profits, total revenues increased by 1.4% year-on-year, while net profit in the 3rd quarter only decreased by 0.3% year-on-year. China Mobile shares could be a good investment opportunity, and most financial analysts also expect their price to rise significantly in the coming years.
