Strategy published on : 09/22/2020 | 06:16
long tradeStop-loss triggered
Entry price : 46.34€
Target : 50.5€
Stop-loss : 43.3€
Potential : 8.98%
The fact that share price is returning to the lower bounds of the trading range offers a good timing to enter into new long positions in Bic.
Investors have an opportunity to buy the stock and target the € 50.5.
● 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 42.86, which offers good timing for buyers.
● Share prices are approaching a strong support area in daily data, which offers good timing for investors.
● The company is in a robust financial situation considering its net cash and margin position.
● As regards fundamentals, the enterprise value to sales ratio is at 1.11 for the current period. Therefore, the company is undervalued.
● This company will be of major interest to investors in search of a high dividend stock.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.
● For the last few months, analysts have been revising downwards their earnings forecast.
● 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 53.98 EUR, the stock shows a negative configuration when looking looking at the weekly chart.