There has been very little movement in Arkema's share price. This situation is bound to change. An exit on the upside out of the current trading range should go with a comeback in volatility. Therefore, the timing for new long positions seems good. Investors should benefit from the breakout of the € 78.3 level to target the € 92.
Strengths
The group usually releases upbeat results with huge surprise rates.
The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
Weaknesses
With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
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.
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