Greencore Group plc : Taking advantage of good earnings release
January 29, 2014 at 03:36 am EST
By
Entry price | Target | Stop-loss | Potential |
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GBX 246.05 |
GBX 276 |
GBX 242 |
+12.17% |
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Greencore Group is an Ireland-based manufacturer that produces and supplies convenience foods and ingredients to consumer, industrial and food service markets. It operates through two segments: Convenience Foods and Ingredients & Related Property.
The group has experienced a revenue growth of 9.1% for the current year and it’s expected to be at 5% for this year. Company’s P/E ratio is estimated to 17.5 for this year which suggest the high level of profits expected by investors on this stock. Its EPS has been up revised during the last year. At the same time Greencore has made investments in significant re-launch activity with customers and plans to develop distribution opportunities with key customers, but this year debts will be cut by 10%.
Graphically, as shown since the beginning of 2013, the chart pattern suggests an uptrend on the share price. This movement will be reinforced by the 20 and 50-days moving averages. Given this technical configuration, most active investors could take a long position in the case of the GBp 253 resistance breakout in order to reach a swing effect target at GBp 276. The stop loss is at GBp 242.
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