Strategy published on : 01/10/2019 | 03:44
short sellStop-loss triggered
Entry price : 30.88€
Target : 25€
Stop-loss : 32.5€
Potential : 19.04%
The underlying trend is clearly bearish for stocks in LEONI AG. This should continue to be the case over the coming trading sessions.
Investors should open a short trade and target the € 25.
● In a short-term perspective, the company has interesting fundamentals.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.33 for the 2018 fiscal year.
● Its low valuation, with P/E ratio at 8.2 and 7.7 for the ongoing fiscal year and 2019 respectively, makes the stock pretty attractive with regard to earnings multiples.
● The company is one of the best yield companies with high dividend expectations.
● Technically, the stock approaches a strong medium-term resistance at EUR 33.96.
● Revenue estimates are regularly revised downwards for the current and coming years.
● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
● 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.
● Below the resistance at 37.44 EUR, the stock shows a negative configuration when looking looking at the weekly chart.