Penta's financial position is satisfactory, with current ratio at 2.9 times and gearing ratio at 0.4 time.
Based on an earning CAGR of 60% over the past 3 years, PENTA's PEG ratio is at 0.4 time. At this PEG ratio, Penta is deemed an attractive growth stock.
Due to the sharp decline over the past 4 weeks, the stock's has gone below the zero line, indicating possible downtrend. Since it has reclaimed its uptrend line, a call is delayed.
Based on good financial performance & financial position and attractive valuation, Penta is a good stock for long term investment. The mild weakness in its technical outlook will likely be worked out in the next few weeks, and thereafter the stock may continue with its prior uptrend.
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