Glencore
GLEN
Delayed London Stock Exchange - 04/23 05:35:18 pm
380.3GBp
-0.09%

Close to a key level on the weekly chart

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Anas Lozach
Analyst

Strategy published on : 04/13/2018 | 08:45

long trade
Live

Entry price : 345.7GBp
Target : 390GBp
Stop-loss : 318.6GBp
Potential : 12.81%

Glencore shares are sitting close to an important technical support area around 338.75 GBp based on weekly price data. Against this backdrop, investors can use this good timing for new long positions.
Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.

● The company has solid fundamentals for a short-term investment strategy.


Strengths

● 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 GBp 338.75 GBp in weekly data.

● The close medium term support offers good timing for purchasing the stock.

● The company shows low valuation levels, with an enterprise value at 0.39 times its sales.

● Its low valuation, with P/E ratio at 9.97 and 11.09 for the ongoing fiscal year and 2019 respectively, makes the stock pretty attractive with regard to earnings multiples.

● The company is one of the best yield companies with high dividend expectations.

● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.

● Over the last twelve months, the sales forecast has been frequently revised upwards.

● 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.

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.

● The stock is in a well-established, long-term rising trend above the technical support level at 338.75 GBp


Weaknesses

● According to forecast, a sluggish sales growth is expected for the next fiscal years.

● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.

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

Zonebourse.com 2018
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