Alstom
ALO
Real-time Euronext Paris - 09/25 11:38:32 am
39.09EUR
+0.15%

Towards the breakout of a major resistance level

Envoyer par e-mail
Jordan Dufee
Analyst

Strategy published on : 01/10/2018 | 09:37

long trade
Stop-loss triggered

Entry price : 36.1€
Target : 41€
Stop-loss : 34.1€
Potential : 13.57%

Shares in Alstom are approaching an important resistance level. The stock's technical chart suggests that this pivot level will be broken.
Investors have an opportunity to buy the stock and target the € 41.

Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● In a short-term perspective, the company has interesting fundamentals.


Strengths

● Historically, the company has been releasing figures that are above expectations.

● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.

● For several months, analysts have been revising their EPS estimates roughly upwards.

● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.

● The stock is in a well-established, long-term rising trend above the technical support level at 29.98 EUR


Weaknesses

● The stock is close to a major daily resistance at EUR 36.1, which should be gotten rid of so as to gain new appreciation potential.

● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.

● Analysts covering the stock have recently lowered their earnings forecast.

Zonebourse.com 2018
Envoyer par e-mail