AXA

CS
Real-time Euronext Paris - 07/19 05:37:18 pm
23.58EUR
-0.23%

First signs of a reversal

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Jordan Dufee
Analyst

Strategy published on : 07/11/2019 | 04:53

short sell
Live

Entry price : 23.62€
Target : 22.6€
Stop-loss : 24.2€
Potential : 4.32%

Shares in AXA reflect a technical chart that has deteriorated, suggesting that the beginning of a tendency reversal is near, which could lead to a somewhat longer downward-trading phase.
Investors should open a short trade and target the € 22.6.

Summary

● The company has solid fundamentals for a short-term investment strategy.


Strengths

● The stock, which is currently worth 2019 to 0.5 times its sales, is clearly overvalued in comparison with peers.

● Its low valuation, with P/E ratio at 8.81 and 8.06 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.

● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.

● Over the last seven days, analysts have been revising upwards their EPS estimates for the company.

● Analysts covering this company mostly recommend stock overweighting or purchase.

● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 21.13 EUR


Weaknesses

● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.

● Technically, the stock approaches a strong medium-term resistance at EUR 23.8.

● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.

● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.

Zonebourse.com 2019
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