An ascending triangle pattern has formed in the chart of ACCO Brands Corp (ACCO). If the resistance level at the top of the pattern is surpassed, a breakout could occur…
ACCO Brands Corp (ACCO) designs, manufactures, and markets consumer and business products. The company offers school notebooks, janitorial supplies, and whiteboards; storage and organization products, and computer accessories used in schools, homes, and businesses.
The company announced last year the acquisition of Power A, a video game peripheral manufacturer known for its MOGA line of controllers. This allows ACCO to pivot away from its traditional school and office products to higher growth offerings. Acquisitions have been a big part of its growth strategy.
ACCO had $86 million in cash as of the end of the last quarter, compared to $953 million in long-term debt. Though its current ratio of 1.6 indicates it has more than enough liquidity to handle short-term obligations.
While both sales and earnings were down over the past year, both are expected to rise in the quarter ending in March. The stock is also undervalued at its current price with a trailing P/E of 11.28 and a forward P/E of 7.82.
ACCO has shown medium term bullishness, but is down over the past few days. This has led to a “Buy” Rating in our POWR Ratings system. It is also reflected in the chart below.
Take a look at the 1-year chart of ACCO below with my added notations…
See chart and continue reading at STOCKNEWS.com