The recent downturn has taken DCC plc shares close to a medium term support level around 6132 GBp. The timing for a long trade in the stock appears good. Investors have an opportunity to buy the stock and target the GBp 6650.
The company has solid fundamentals for a short-term investment strategy.
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 GBp 6132 GBp in weekly data.
The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.42 for the 2020 fiscal year.
Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
As estimated by analysts, this group is among those businesses with the lowest growth prospects.
The company has insufficient levels of profitability.
The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.
For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.
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.
The underlying tendency is negative on the weekly chart below the resistance at 6795 GBp
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