FRONTIER DEVELOPMENT

FDEV
Delayed Quote. Delayed  - 08/10 09:54:19 am
2007GBX -3.51%

Frontier Developments plc : The stock forcefully approaches new pivot levels

Jordan Dufee
Analyst

Strategy published on : 07/31/2020 | 03:31

long trade
Live

Entry price : 1964GBX
Target : 2300GBX
Stop-loss : 1700GBX
Potential : 17.11%

Frontier Developments plc shares are closing in on important technical levels. The technical chart pattern suggests that the currently tested resistance will be broken and new upside potential arises while volatility is likely to increase. Investors could get ahead of this signal in order to benefit from a better risk/reward ratio.
Investors have an opportunity to buy the stock and target the GBX 2300.

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

● Growth progress expectations are rather promising. Indeed, sales are expected to rise sharply in the coming years.

● The company returns high margins, thereby supporting business profitability.

● Thanks to a sound financial situation, the firm has significant leeway for investment.

● Historically, the company has been releasing figures that are above expectations.

● Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.

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

● For several months, analysts have been revising their EPS estimates roughly upwards.

● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.

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

● The stock is in a well-established, long-term rising trend above the technical support level at 1412 GBX


Weaknesses

● Stock prices approach a strong long-term resistance in weekly data at GBX 2065.

● The stock is close to a major daily resistance at GBX 2065, which should be gotten rid of so as to gain new appreciation potential.

● The company's "enterprise value to sales" ratio is among the highest in the world.

● With an expected P/E ratio at 59.83 and 47.39 respectively for both the current and next fiscal years, the company operates with high earnings multiples.

MarketScreener.com 2020
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