Strategy published on : 09/11/2019 | 03:44
Entry price : 48.27€
Target : 54.8€
Stop-loss : 45.7€
Potential : 13.53%
After several weeks of range-bound movement, shares in Colruyt could enter into a new clear trend. The exit out of the current trading range could be the signal for a return of volatility.
Investors have an opportunity to buy the stock and target the € 54.8.
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
● The share is getting closer to its long-term support in weekly data, at EUR 45.22, which offers good timing for buyers.
● The close medium term support offers good timing for purchasing the stock.
● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
● Historically, the company has been releasing figures that are above expectations.
● The company shows low valuation levels, with an enterprise value at 0.66 times its sales.
● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
● The company does not generate enough profits, which is an alarming weak point.
● Most analysts agree on a negative opinion with regard to the stock. Indeed, the average consensus issues recommendations to underperform or sell.
● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.
● The underlying tendency is negative on the weekly chart below the resistance at 56.44 EUR