Strategy published on : 05/16/2019 | 06:13
Entry price : 36€
Target : 40€
Stop-loss : 35€
Potential : 11.11%
Fuchs Petrolub SE shares are closing near attractive entry levels for a medium term horizon. Investors could regard the decline over the past weeks as a buying opportunity.
Investors have an opportunity to buy the stock and target the € 40.
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The share is getting closer to its long-term support in weekly data, at EUR 35, which offers good timing for buyers.
● The close medium term support offers good timing for purchasing the stock.
● The group's high margin levels account for strong profits.
● The company is in a robust financial situation considering its net cash and margin position.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● Historically, the company has been releasing figures that are above expectations.
● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● For the last four months, EPS estimates made by Thomson-Reuters analysts have been revised downwards.
● 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 42.46 EUR