Strategy published on : 02/11/2019 | 02:49
Entry price : 45.98€
Target : 40€
Stop-loss : 51€
Potential : 13.01%
The declining trend in the stock price that has been seen for a number of trading sessions, should not be expected to reach a turning point over the coming days.
Investors should open a short trade and target the € 40.
● In a short-term perspective, the company has interesting fundamentals.
● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at EUR 43.22 EUR in weekly data.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.16 for the 2019 fiscal year.
● Its low valuation, with P/E ratio at 8.94 and 8.5 for the ongoing fiscal year and 2020 respectively, makes the stock pretty attractive with regard to earnings multiples.
● The company is one of the best yield companies with high dividend expectations.
● For the last week, the earnings per share forecast has been revised upwards. According to recent estimates, analysts give a positive overview of the stock
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
● According to Thomson-Reuters' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● The sales outlook for the group was lowered in the last twelve months. This change in forecast points out a decline in activity as well as pessimistic analyses of the company.
● For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.
● For the last four months, EPS estimates made by Thomson-Reuters analysts have been revised downwards.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
● The underlying tendency is negative on the weekly chart below the resistance at 56.8 EUR