Acme Resources Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamentals

Acme Resources, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO on February 27, 2024. This downgrade is due to the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of only 3.77%. Additionally, the company's results for December 2023 were flat, further contributing to the 'Sell' rating.
Other factors that have led to this downgrade include the stock being in a mildly bullish range and multiple bullish indicators such as MACD, KST, and DOW. However, despite these indicators, the company's ROE of 9.5 is still considered attractive with a price to book value of 1. The stock is also currently trading at a discount compared to its historical valuations.

In the past year, Acme Resources has generated a return of 175.80%, but its profits have only risen by 158.7%. This has resulted in a PEG ratio of 0.1, indicating that the stock may be overvalued. Additionally, the majority shareholders of the company are promoters.

While Acme Resources has shown market-beating performance in the long term, with a return of 175.80% in the past year, it has also outperformed BSE 500 in the last 3 years, 1 year, and 3 months. However, with the recent downgrade from MarketsMOJO, investors may want to carefully consider their options before investing in this microcap finance company.