After the strong price increase that has been seen over the past few weeks, it appears opportune to anticipate a correction phase for shares in Adecco Group AG, as the resistance around 72.75 CHF approaches.
Summary
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● The company shows low valuation levels, with an enterprise value at 0.53 times its sales.
● The company is one of the best yield companies with high dividend expectations.
● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 59.4 CHF
Weaknesses
● Stock prices approach a strong long-term resistance in weekly data at CHF 71.15.
● The stock is close to a major daily resistance at CHF 72.75, which should be gotten rid of so as to gain new appreciation potential.
● With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
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Adecco Group AG, formerly Adecco S.A., provides human resource (HR) services. The Company's services include temporary staffing, permanent placement, outsourcing, career transition. It operates through two business lines: Staffing and Solutions. The Staffing business line includes General Staffing, which includes Office and Industrial, and Professional Staffing, which includes Information Technology, Engineering and Technical, Finance and Legal, and Medical and Science. The Solutions business line includes Business Process Outsourcing, which includes Managed Service Programs, Recruitment Process Outsourcing and Vendor Management System, and Career Transition and Talent Development, which includes outplacement, career development, change management solutions, training and consulting. Its segments include France, North America, UK & Ireland, Germany & Austria, Japan, Italy, Benelux, Nordics, Iberia, Australia & New Zealand, Switzerland, Emerging Markets and Lee Hecht Harrison.