Sophisticated Investors Should Avoid: Jumia Technologies AG (JMIA), Ballard Power Systems Inc. (BLDP)

Jumia Technologies AG (NYSE: JMIA) shares are 34.62% up in the year-to-date (YTD) period and have moved -6.40% or -$0.62 lower in the latest trading session. However, stock’s trailing 12-month performance remains nearly +321.40% lower. Comparatively, the stock is -62.09% down YTD and 101.78% over the trailing 3-month period. If we look at the shorter duration, its week performance is -16.73% and -20.32% over the month.

Analyst Recommendations

On March 25, 2020, Berenberg recommended the JMIA stock is a Hold, while earlier, Stifel had Downgrade the stock as a Hold on May 14, 2020. 8 analysts offering the recommendations for the stock have a consensus rating of 3.00 to suggest that the JMIA stock is a “Hold. 2 of the 8 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 1 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $9.06 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $12.57. The forecasts give the Jumia Technologies AG stock a price target range of $13.70 on the higher side while at least one analyst think the stock could plunge to a low of $6.78. The two limits represent an upside potential of 33.87% or -33.63%.

Earnings Forecast

Analysts estimate the earnings to increase 25.60% in the current quarter to -$0.71, down from the -$0.65 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$2.42, up 1.70% from -$1.9 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.67 and -$0.52. Wall Street estimates earnings per share to be at an average of -$2.18 for the next year.

Ballard Power Systems Inc. (NASDAQ:BLDP), on the other hand, is trading around $15.82 with a market cap of $3.58B and analyst research firms have a negative stance on its shares. Analysts predict that the stock will reach $21.31 and spell out a more modest performance – a 25.76% return. Some analysts are even forecasting $Industrials per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the Ballard Power Systems Inc. (BLDP) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

BLDP’s operating margin was negative on the trailing 12 months basis, remaining steady at -28.70%, while the operating expenses over the recent quarter were at $14.48 million. This represented a 43.92% of the company’s total revenues which amounted $25.82 million. With this in place, we can see that the company’s diluted EPS declined -$0.05 on the year-over-year period, shrinking to -$0.03 as given in the last earnings report.

In terms of the balance sheet & cash flow as of Name, the total assets figure advanced to $371.77 million from $370.04 million over the previous quarter. The cash flow from operating activities totaled -$24.95 million, significantly lower than the -$8.75 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$31.8 million.

Major holders

Insiders own 0.50% of the company shares, while shares held by institutions stand at 16.40% with a share float percentage of 174.87M.