DCC plc

DCC
Real-time CHI-X EUROPE LIMITED. - 02/20 11:30:00 am
6273GBp
-1.07%

DCC plc : Underpinned by a support level

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Jordan Dufee
Analyst

Strategy published on : 02/14/2020 | 02:38

long trade
Live

Entry price : 6334GBp
Target : 6650GBp
Stop-loss : 6120GBp
Potential : 4.99%

The recent downturn has taken DCC plc shares close to a medium term support level around 6132 GBp. The timing for a long trade in the stock appears good.
Investors have an opportunity to buy the stock and target the GBp 6650.

Summary

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


Strengths

● 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 GBp 6132 GBp in weekly data.

● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.42 for the 2020 fiscal year.

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.


Weaknesses

● As estimated by analysts, this group is among those businesses with the lowest growth prospects.

● The company has insufficient levels of profitability.

● The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.

● 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 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 6795 GBp

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