Strategy published on : 12/04/2017 | 10:29
long tradeTarget price hit
Entry price : 142.7€
Target : 160.45€
Stop-loss : 131.8€
Potential : 12.44%
The technical chart pattern of zooplus AG shares shows signs of a medium term reversal, which speaks in favor of opening new long positions.
Investors have an opportunity to buy the stock and target the € 160.45.
● The company has poor fundamentals for a short-term investment strategy.
● The share is getting closer to its long-term support in weekly data, at EUR 124.05, which offers good timing for buyers.
● The prospective high growth for the next fiscal years is among the main assets of the company
● As regards fundamentals, the enterprise value to sales ratio is at 0.89 for the current period. Therefore, the company is undervalued.
● The company sustains low margins.
● 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.
● With an expected P/E ratio at 334.95 and 106.95 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.
● 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.