Strategy published on : 06/30/2020 | 03:16
long trade on a pullbackStop-loss triggered
Entry price : 49GBX
Target : 60GBX
Stop-loss : 43GBX
Cancellation Level : 55GBX
Potential : 22.45%
The decline over the past weeks has brought the price of Just Group plc shares back to an important technical support level at 38.86 GBX. This represents an opportunity to take advantage of these prices levels.
Investors should buy the stock at current prices near GBX 49 in order to target the GBX 60.
● 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.
● The share is getting closer to its long-term support in weekly data, at GBX 38.86, which offers good timing for buyers.
● The close medium term support offers good timing for purchasing the stock.
● The stock, which is currently worth 2020 to 0.45 times its sales, is clearly overvalued in comparison with peers.
● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
● 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.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The company is not the most generous with respect to shareholders' compensation.
● 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.