Strategy published on : 10/09/2019 | 02:39
long trade on a pullbackConditional Order Terminated
Entry price : 91.7€
Target : 100€
Stop-loss : 87€
Cancellation Level : 99.8€
Potential : 9.05%
The support at 91.72 EUR, which is currently being tested, should allow Michelin shares to move back to the upside.
Investors should buy the stock at current prices near € 91.7 in order to target the € 100.
● 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 group usually releases upbeat results with huge surprise rates.
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
● Its low valuation, with P/E ratio at 9.38 and 8.57 for the ongoing fiscal year and 2020 respectively, makes the stock pretty attractive with regard to earnings multiples.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Analysts covering the stock have recently lowered their earnings forecast.
● For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.