Strategy published on : 10/10/2017 | 12:03
short sellStop-loss triggered
Entry price : 184.25€
Target : 168€
Stop-loss : 185€
Potential : 8.82%
Close to the upper bound of the consolidation zone, investors will need to be careful and anticipate selling pressure for stocks in Muenchener Rueckversicherung.
Investors should open a short trade and target the € 168.
● The company usually posts poor financials for mid or long term investments.
● For a short-term investment strategy, the company has poor fundamentals.
● With a P/E ratio at 13.57 for the current year and 11.61 for next year, earnings multiples are highly attractive compared with competitors.
● The company is one of the best yield companies with high dividend expectations.
● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● The stock is close to a major daily resistance at EUR 189.4, which should be gotten rid of so as to gain new appreciation potential.
● According to Thomson-Reuters' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● The group usually releases earnings worse than estimated.
● The sales outlook for the group was lowered in the last twelve months. This change in forecast points out a decline in activity as well as pessimistic analyses of the company.
● Analysts covering the stock have recently lowered their earnings forecast.
● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.