Computacenter plc

CCC
Real-time CHI-X EUROPE LIMITED. - 01/23 11:30:00 am
1766.5GBp
+0.91%

Computacenter plc : Towards the breakout of a major resistance level

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Alexis Colardelle
Junior Analyst

Strategy published on : 01/14/2020 | 02:25

long trade on a pullback
Conditional Order Terminated

Entry price : 1655GBp
Target : 1829GBp
Stop-loss : 1600GBp
Cancellation Level : 1755GBp
Potential : 10.51%

Computacenter plc shares are trading close to a resistance zone which currently limits any upside potential. We expect that this level will be broken due to the stock's technical chart pattern.
Investors should buy the stock at current prices near GBp 1655 in order to target the GBp 1829.

Summary

● 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.


Strengths

● 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.

● The group usually releases upbeat results with huge surprise rates.

● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.36 for the 2019 fiscal year.

● 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 past year, analysts have regularly revised upwards their sales forecast for the company.

● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.

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

● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 1375 GBp


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.

● Low profitability weakens the company.

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