SUPERVALU INC. ● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at USD 16.8 USD in weekly data.
● Graphically speaking, the timing seems perfect for purchasing the stock close to the USD 15.68 support.
● The company shows low valuation levels, with an enterprise value at 0.38 times its sales.
● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
● Growth remains a strong point in this company. In their sales forecast, analysts sound optimistic with regard to sales prospects.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● The company sustains low margins.
● The technical configuration over the long term remains negative on the weekly chart below the resistance level at 24.78 USD
