SGS

SGSN
Delayed Swiss Exchange - 12/13 05:30:16 pm
2602CHF
-0.54%

SGS : Limited upside due to a resistance on the weekly chart

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Jordan Dufee
Analyst

Strategy published on : 12/03/2019 | 02:51

short sell
Live

Entry price : 2585CHF
Target : 2470CHF
Stop-loss : 2635CHF
Potential : 4.45%

The increase that has been seen over the past weeks in the share price of SGS has brought back the stock to major resistance levels on the weekly chart. Reaching this zone could lead to profit-taking and give rise to a correction.
Investors should open a short trade and target the CHF 2470.

Weaknesses

● Stock prices approach a strong long-term resistance in weekly data at CHF 2658.

● The stock is close to a major daily resistance at CHF 2604, which should be gotten rid of so as to gain new appreciation potential.

● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.

● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.

● With a 2019 P/E ratio at 30.53 times the estimated earnings, the company operates at rather significant levels of earnings multiples.

● For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.

● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.

● For the last few months, analysts have been revising downwards their earnings forecast.

● For the past year, analysts have significantly revised downwards their profit estimates.

● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.

Zonebourse.com 2019
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