Strategy published on : 06/29/2020 | 03:30
long tradeStop-loss triggered
Entry price : 38.96CHF
Target : 41.6CHF
Stop-loss : 37CHF
Potential : 6.78%
After several weeks of decline, shares in Stadler Rail AG are approaching an important technical support area around 38.38 CHF on the weekly chart. These levels represent attractive entry points.
Investors have an opportunity to buy the stock and target the CHF 41.6.
● 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 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 CHF 38.38 CHF in weekly data.
● Graphically speaking, the timing seems perfect for purchasing the stock close to the CHF 38.02 support.
● 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 1.07 for the current period. Therefore, the company is undervalued.
● For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
● 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 four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.
● 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.
● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 43.42 CHF