Bunzl shows relatively stong fundamentals and is coming back to attractive prices.
From a fundamental viewpoint, the company seems undervalued relatively to its peers with a EV/Sales of 0.85x. In the recent months, the earnings estimates for the next year are regularly revised upward by analysts.
Technically, the security fell sharply for several weeks. This fall has lead Bunzl towards the 50-day moving average area, which could become useful as a stepping stone for a technical rebound. The target of this bullish trend is the GBp 1409 resistance. Even though the 20-day moving average is still in a bearish trend, the oversold situation could encourage a renewed interest in Bunzl's stock.
Therefore, the proximity of the 50-day moving average is an opportunity to take a long position in Bunzl. The first goal is a return in the GBp 1409 resistance area. In fact, the security has to cross this area in order to re-establish a bullish trend in the short term. A stop loss order can be placed under the GBp 1310 support.
Bunzl plc specializes in the distribution of hygiene and safety packages, products, and materials. The group also offers packaging products, restaurant items (cutlery, glassware, kitchen utensils, etc.), cleaning products (soaps, detergents, toilet paper, custodial products, polishes, washing machines, etc.), and personal protection equipment (gloves, masks, clothing, etc.).
Net sales break down by sector into food services (29.8%), grocery stores (26.1%), safety (14.8%), retail (9.6%), hygiene and cleaning (9.3%), healthcare (7%), and other (3.4%).
Net sales are distributed geographically as follows: the United Kingdom and Ireland (12%), Continental Europe (18%), North America (61.2%) and other (8.8%).
BUNZL PLC 
