Alstom
ALO
Real-time Euronext Paris - 01/17 01:36:00 pm
36.39EUR
+1.62%

Towards the breakout of a major resistance level

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Jordan Dufee
Analyst

Strategy published on : 01/10/2018 | 09:37

long trade
Live

Entry price : 36.1€
Target : 41€
Stop-loss : 34.1€
Potential : 13.57%

Shares in Alstom are approaching an important resistance level. The stock's technical chart suggests that this pivot level will be broken.
Summary

● 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

● Historically, the company has been releasing figures that are above expectations.

● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.

● For several months, analysts have been revising their EPS estimates roughly upwards.

● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.

● The stock is in a well-established, long-term rising trend above the technical support level at 29.98 EUR


Weaknesses

● The stock is close to a major daily resistance at EUR 36.1, which should be gotten rid of so as to gain new appreciation potential.

● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.

● Analysts covering the stock have recently lowered their earnings forecast.

Zonebourse.com 2018
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