Is Liberty Latin America (LILAK) Ready to Breakout?

Liberty Latin America Ltd. (LILAK) is a telecommunications company. It is a provider of video, broadband internet, fixed-line telephony and mobile services to residential and business customers. The company’s reportable segments include C&W Caribbean and Networks, C&W Panama, VTR/Cableticaand Liberty Puerto Rico…

Liberty Latin America Ltd. (LILAK) is slowly recovering from the pandemic. In the first quarter, the company’s operating environment was challenging due to reduced tourism and restrictions still in place in a number of markets. Going forward, the firm is looking to bring high-speed connectivity to more households in the Latin America region.

The company had $1.3 billion in cash on hand as of the most recent quarter, compared with only $163 million in short-term debt. However, LILAK’s net profit margin was -10.5%. Over the past year, earnings were down 22.2%, but analysts forecast earnings will rise 95% this quarter.

The stock appears slightly overvalued with a forward P/E of 24.81. The company’s stock performance has been mixed since March as shown in the chart below.

Take a look at the 1-year chart of LILAK below with added notations…

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