In the past few sessions, Sports Direct International shares have suffered from a sharp fall and is now coming back to a significant level support.

From a fundamental viewpoint, the company seems undervalued relatively to its peers with a EV/Sales ratio of 0.81.
However, analysts have revised slightly downward their earnings forecasts.
With an EPS estimated at 40.73 GBp for this year and 38.08 GBp for the next year, Sports Direct International is currently paid 9.28 and 9.93 times the earnings.

Technically, in daily data, even if moving averages are still in a downtrend, a positive reaction in the GBp 348 area should stop this trend and allow a technical rebound towards GBp 425.1 after the breakout of the GBp 383.3. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.

Therefore, the proximity of the GBp 348 support is an opportunity to go long on Sports Direct International. The first goal is a return in the GBp 425.1. A stop loss order can be placed at GBp 362.