VALEO ● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
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 EUR 23.59 EUR in weekly data.
● Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 23.47 support.
● Historically, the company has been releasing figures that are above expectations.
● The stock, which is currently worth 2018 to 0.43 times its sales, is clearly overvalued in comparison with peers.
● Its low valuation, with P/E ratio at 8.79 and 7.47 for the ongoing fiscal year and 2019 respectively, makes the stock pretty attractive with regard to earnings multiples.
● This company will be of major interest to investors in search of a high dividend stock.
● 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'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, earnings estimated by analysts have been revised downwards with respect to the next two years.
● 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 technical configuration over the long term remains negative on the weekly chart below the resistance level at 39.11 EUR
