VALEO ● 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 EUR 46.82, which offers good timing for buyers.
● Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 46 support.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● Historically, the company has been releasing figures that are above expectations.
● The stock, which is currently worth 2018 to 0.66 times its sales, is clearly overvalued in comparison with peers.
● With a P/E ratio at 11.41 for the current year and 9.8 for next year, earnings multiples are highly attractive compared with competitors.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● 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 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
● The underlying tendency is negative on the weekly chart below the resistance at 54.9 EUR
