Saint-Gobain : The long term upward trend could suffer in the short term
Entry price | Target | Stop-loss | Potential |
---|
€37.15 |
€34 |
€38.6 |
+8.48% |
---|
The breach of the resistance zone around 38.07 EUR seems hard to achieve. The most probable scenario therefore seems to be one in which a short term correction takes place for shares in Saint-Gobain.
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● The group usually releases upbeat results with huge surprise rates.
● The company shows low valuation levels, with an enterprise value at 0.7 times its sales.
● With a P/E ratio at 11.58 for the current year and 10.75 for next year, earnings multiples are highly attractive compared with competitors.
● The tendency within the weekly time frame is positive above the technical support level at 33.69 EUR
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.
● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● The company sustains low margins.
● Analysts covering the stock have recently lowered their earnings forecast.
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