INDITEX : After the accumulation, an upward acceleration ?
Entry price | Target | Stop-loss | Potential |
---|
€25.99 |
€32 |
€24.2 |
+23.12% |
---|
After several weeks of range-bound movement, shares in Industria de Diseño Textil, S.A. could enter into a new clear trend. The exit out of the current trading range could be the signal for a return of volatility.
Strengths● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 24.41 EUR
Weaknesses● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● The company's earnings releases usually do not meet expectations.
● With an expected P/E ratio at 58.78 and 25.27 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● Revenue estimates are regularly revised downwards for the current and coming years.
● 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 few months, analysts have been revising downwards their earnings forecast.
● For the past year, analysts have significantly revised downwards their profit estimates.
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