Watch Out for This NYSE-Listed Industrial Stock- BEST

BEST Inc

BEST Inc. (NYSE: BEST) is a leading integrated smart supply chain solutions and logistics services provider in China. The company offers a comprehensive set of logistics and value-add services, including express and freight delivery, supply chain management and last-mile services, truckload service brokerage, international logistics and financial services.

Key Highlights

• Declining Top Line: The company’s revenue was RMB 2,724.9 million (USD 427.6 million), down 20.3% year on year from RMB 3420.5 million ("YoY"). The drop in revenue was primarily due to the closure of the UCargo company and a significant decline in Freight revenue.
• Negative Bottom Line: In Q4 FY21, the company posted a gross loss of RMB 228.4 million and negative EBITDA of RMB 658.9 million compared to gross profit of RMB 115.3 million and negative EBITDA of 182.6 million in Q4 FY20, respectively, due to rise in global and other operating expenses resulting from increasing oil prices and labour costs.
• Technical Weakness: The leading momentum indicator, the 14-day period Relative Strength Index (RSI) hovering in a neutral zone, with bearish bias at 48.9. Further, BEST stock is not able to break decisively its near-term crucial resistance of 50-day SMA, which implies that 50-day SMA level is acting as a supply zone in the stock. Also, its shares are hovering below its crucial long-term support level of 200-day SMA, another long-term bearish indicator.

Stock recommendation

Considering the decrease in the revenue, negative bottom line, and technical weakness in stock price, we recommend a “Watch” rating on BEST stock at the current market price of USD 0.6990 (as of March 29, 2022)

1-Year Technical Price Chart (as on March 29, 2022). Source: REFINITIV, Analysis by Kalkine Group.

Technical Summary

*Closing Price as on March 29^th, 2022

Note: Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.