Fresnillo plc shares are trading close to a major technical resistance, which, if broken, could yield new upside potential and an increase in volatility. This scenario can be anticipated. Investors have an opportunity to buy the stock and target the GBX 1500.
Summary
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.
Strengths
Growth progress expectations are rather promising. Indeed, sales are expected to rise sharply in the coming years.
The group's high margin levels account for strong profits.
Thanks to a sound financial situation, the firm has significant leeway for investment.
Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
Over the past year, analysts have regularly revised upwards their sales forecast for the company.
Over the last seven days, analysts have been revising upwards their EPS estimates for the company.
For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
The tendency within the weekly time frame is positive above the technical support level at 880.4 GBX
Weaknesses
The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
Technically, the stock approaches a strong medium-term resistance at GBX 1357.5.
Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
The company's enterprise value to sales, at 4.14 times its current sales, is high.
The company benefits from high valuations in earnings multiples.
The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
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