GLENCORE PLC ● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
Strengths
● The share is getting closer to its long-term support in weekly data, at GBp 327.35, which offers good timing for buyers.
● Graphically speaking, the timing seems perfect for purchasing the stock close to the GBp 329.65 support.
● The stock, which is currently worth 2017 to 0.42 times its sales, is clearly overvalued in comparison with peers.
● With a P/E ratio at 12.95 for the current year and 11.76 for next year, earnings multiples are highly attractive compared with competitors.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● The stock is in a well-established, long-term rising trend above the technical support level at 327.35 GBp
Weaknesses
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
