No turn-around in sight
Strategy published on : 10/10/2017 | 09:00
Entry price : 630CHF
Target : 660CHF
Stop-loss : 618CHF
Cancellation Level : 655CHF
Potential : 4.76%
● 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.
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Historically, the company has been releasing figures that are above expectations.
● Sales forecast by analysts have been recently revised upwards.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 476.83 CHF
● 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.
● Technically, the stock approaches a strong medium-term resistance at CHF 660.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 41.4 times its estimated earnings per share for the ongoing year.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.