Lenovo Technical Analysis - Lenovo Trading: 2022-02-24

Lenovo Group Limited develops, manufactures and markets commercial and consumer personal computers , as well as servers and workstations, data center solutions, and networking products. The company, which is based in Quarry Bay, Hong Kong, operates in China, the Asia Pacific, Europe, the Middle East, Africa, and the Americas. Its market capitalization is 102.8 billion HKD. The stock is trading at P/E ratio (Trailing Twelve Months) of 19.94 currently. Lenovo earned HKD 67.67 billion revenue (ttm) and Return on Equity (ttm) of 40.93% with Return on Assets (ttm) at 4.83%. Yesterday the company reported quarterly results. Third-quarter earnings jumped 62% over third quarter of 2020 to an all-time high of $640 million. Revenue for the quarter ended December 31 rose 17% over year to $20.1 billion, also a record and ahead of an average estimate of $18.4 billion from 10 analysts, according to Refinitiv data. Lenovo also said that it was on track to deliver its medium-term target of doubling its net income margin by the end of FY 2023/2024. High demand for more premium, portable and high-quality PCs due to growing popularity of hybrid work arrangements boosted demand for PCs, according to the world's biggest maker of personal computers. The company forecast the growing acceptance of hybrid work arrangement will drive PC demand even after the pandemic. Better than expected quarterly results are bullish for stock price. However, the stock closed 2.7% lower on Wednesday and is retreating currently.