Shares in Nexans are trading close to a major resistance level situated around 37.36 EUR, which limits upside potential and could cause a corrective move to the downside. Investors should open a short trade and target the € 33.4.
The stock, which is currently worth 2019 to 0.45 times its sales, is clearly overvalued in comparison with peers.
Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
Over the last twelve months, the sales forecast has been frequently revised upwards.
The tendency within the weekly time frame is positive above the technical support level at 29.24 EUR
Stock prices approach a strong long-term resistance in weekly data at EUR 37.3.
The stock is close to a major daily resistance at EUR 37.36, which should be gotten rid of so as to gain new appreciation potential.
The company has insufficient levels of profitability.
Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
The company's earnings releases usually do not meet expectations.
The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
For the past year, analysts have significantly revised downwards their profit estimates.
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