After several weeks of decline, shares in ASOS Plc are approaching an important technical support area around 4474 GBX on the weekly chart. These levels represent attractive entry points. Investors should buy the stock at current prices near GBX 4380 in order to target the GBX 5350.
The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
In a short-term perspective, the company has interesting fundamentals.
Its core activity has a significant growth potential and sales are expected to surge, according to Standard & Poor's' forecast. Indeed, those may increase by 65% by 2023.
The group usually releases upbeat results with huge surprise rates.
As regards fundamentals, the enterprise value to sales ratio is at 1.2 for the current period. Therefore, the company is undervalued.
Over the last twelve months, the sales forecast has been frequently revised upwards.
Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
Within the weekly time frame the stock shows a bullish technical configuration above the support level at 4474 GBX
The company sustains low margins.
With a 2021 P/E ratio at 32.69 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
ę MarketScreener.com 2021
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