(RAM) Ramada Investimentos e - Ratings and Ratios

Ramada Investimentos e Industria, S.A. operates as a diversified industrial and investment firm with a strong focus on the steel and wire drawing sectors, serving both domestic and international markets. The company is organized into two primary segments: Industry and Real Estate. The Industry segment specializes in producing high-quality steel products, including machine construction steel and tool steel, which are used in the manufacturing of dies, cutters, and molds. These products cater to key industries such as automotive, capital goods, household appliances, and electronics. Additionally, the company manufactures and distributes steel wires for industrial, agricultural, and civil construction applications. The Real Estate segment manages and leases properties, including forestry assets, while also overseeing financial investments to diversify revenue streams. Established in 1935 and headquartered in Porto, Portugal, Ramada Investimentos e Industria, S.A. has a long-standing history of industrial expertise and strategic investments.

From a technical perspective, RAM shares have shown a modest upward trend in recent weeks, with the 20-day SMA crossing above the 50-day SMA, signaling potential short-term bullish momentum. However, the 200-day SMA remains below current prices, indicating that the stock may still be in a longer-term downtrend. The ATR of 0.09 suggests low volatility, which could appeal to risk-averse investors. Fundamentally, the company’s P/B ratio of 1.35 indicates that the stock is fairly valued relative to its book value, while the RoE of 22.03 highlights strong profitability. The forward P/E is currently unavailable, which may reflect uncertainty about future earnings. The P/S ratio of 1.29 suggests the market is pricing the stock inline with its revenue generation capabilities.

3-Month Forecast: - Month 1: The stock is likely to test the upper resistance level near the 200-day SMA (6.30). A breakout above this level could push prices toward 7.50, driven by positive momentum and strong earnings. - Month 2: If the breakout is successful, the stock may consolidate between 7.30 and 7.70, supported by its low ATR and stable industrial demand. - Month 3: However, if the breakout fails, the stock could decline toward the 6.00 level, particularly if the forward P/E remains unresolved or if broader market conditions deteriorate. The high P/E of 15.60 could also act as a headwind, making the stock vulnerable to profit-taking.