Greencore Group plc : Close to an important medium term support level
Entry price | Target | Stop-loss | Potential |
---|
GBX 0 |
GBX 266 |
GBX 220 |
+∞% |
---|
Pursuant to the correction that has taken place in recent weeks with respect to the shares in Greencore Group plc, further downside risk now appears limited by close and important technical support levels at 239.1 GBp.
Summary● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths● The share is getting closer to its long-term support in weekly data, at GBp 233.1, which offers good timing for buyers.
● Graphically speaking, the timing seems perfect for purchasing the stock close to the GBp 239.1 support.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● As regards fundamentals, the enterprise value to sales ratio is at 0.88 for the current period. Therefore, the company is undervalued.
● The tendency within the weekly time frame is positive above the technical support level at 233.1 GBp
Weaknesses● The group usually releases earnings worse than estimated.
● For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
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