Strategy published on : 03/24/2020 | 03:16
Entry price : 14.2€
Target : 17.8€
Stop-loss : 12.2€
Potential : 25.35%
After several weeks of decline, shares in Wienerberger AG are approaching an important technical support area around 12.1 EUR on the weekly chart. These levels represent attractive entry points.
Investors have an opportunity to buy the stock and target the € 17.8.
● 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.
● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at EUR 12.1 EUR in weekly data.
● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
● As regards fundamentals, the enterprise value to sales ratio is at 0.66 for the current period. Therefore, the company is undervalued.
● With a P/E ratio at 6.56 for the current year and 5.74 for next year, earnings multiples are highly attractive compared with competitors.
● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
● The underlying tendency is negative on the weekly chart below the resistance at 19.32 EUR