Bouygues : In an accumulation phase

02/12/2019 | 04:08am EST

long trade under condition On stand-by

Entry price : 31.5€ | Target : 34.7€ | Stop-loss : 29.5€ | Cancellation Level : 29.4€ | Potential : 10.16%

After several weeks of range-bound movement, shares in Bouygues could enter into a new clear trend. The exit out of the current trading range could be the signal for a return of volatility. Investors should benefit from the breakout of the € 31.5 level to target the € 34.7.

Chart BOUYGUES

Duration : Auto. 2 months 3 months 6 months 9 months 1 year 2 years 5 years 10 years Max. Period : Day Week

Full-screen chart

Summary

• 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 share is getting closer to its long-term support in weekly data, at EUR 29.64, which offers good timing for buyers.
• Share prices are approaching a strong support area in daily data, which offers good timing for investors.
• Historically, the company has been releasing figures that are above expectations.
• The stock, which is currently worth 2018 to 0.42 times its sales, is clearly overvalued in comparison with peers.
• With a P/E ratio at 10.73 for the current year and 10.14 for next year, earnings multiples are highly attractive compared with competitors.
• This company will be of major interest to investors in search of a high dividend stock.
• 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.
• The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.

Weaknesses

• Below the resistance at 35.66 EUR, the stock shows a negative configuration when looking looking at the weekly chart.

Ratings chart

Subsector Construction & Engineering - NEC

1st jan. Capitalisation (M$) Investor Rating BOUYGUES -1.08% 13 038 VINCI 11.80% 53 416 CHINA STATE CONSTRUCTION EN.. 8.25% 38 247 LARSEN & TOUBRO -14.60% 24 147 CHINA COMMUNICATIONS CONSTR.. 9.50% 24 111 CHINA RAILWAY GROUP LTD -0.72% 23 152 CHINA RAILWAY CONSTRUCTION .. -3.22% 20 766 FERROVIAL 10.71% 16 414 ACS ACTIVIDADES DE CONSTRUC.. 9.99% 13 213 POWER CONSTRUCTION CORPORAT.. 6.17% 11 656 CIMIC GROUP LTD 12.35% 11 214

Autres valeurs du secteur

Jordan Dufee

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