Strategy published on : 03/13/2019 | 04:27
Entry price : 22.09€
Target : 20.5€
Stop-loss : 23€
Potential : 7.2%
Below the resistance levels that are currently being tested and which are situated around 22.48 EUR, the beginning of a correction phase for shares in RWE appears to be the most likely scenario.
Investors should open a short trade and target the € 20.5.
● As regards fundamentals, the enterprise value to sales ratio is at 0.74 for the current period. Therefore, the company is undervalued.
● The company is one of the best yield companies with high dividend expectations.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● 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.
● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.
● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
● The group shows a rather high level of debt in proportion to its EBITDA.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● For the past seven days, analysts have been lowering their EPS expectations for the company.
● For the last few months, analysts have been revising downwards their earnings forecast.