Strategy published on : 12/06/2018 | 08:44
Entry price : 36.1€
Target : 28€
Stop-loss : 39.3€
Potential : 22.44%
A strong pullback is expected for stocks in Casino Guichard-Perrachon in light of recent trading volumes and an increase in volatility.
Investors should open a short trade and target the € 28.
● The company shows low valuation levels, with an enterprise value at 0.24 times its sales.
● The company is one of the best yield companies with high dividend expectations.
● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
● The company does not generate enough profits, which is an alarming weak point.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.
● For the past year, analysts have significantly revised downwards their profit estimates.