RENAULT ● 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 54.08, which offers good timing for buyers.
● Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 58.36 support.
● Historically, the company has been releasing figures that are above expectations.
● The stock, which is currently worth 2018 to 0.25 times its sales, is clearly overvalued in comparison with peers.
● Its low valuation, with P/E ratio at 4.39 and 4.19 for the ongoing fiscal year and 2019 respectively, makes the stock pretty attractive with regard to earnings multiples.
● The company is one of the best yield companies with high dividend expectations.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Weaknesses
● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
● The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● For the last four months, EPS estimates made by Thomson-Reuters analysts have been revised downwards.
● Below the resistance at 76.33 EUR, the stock shows a negative configuration when looking looking at the weekly chart.
