Serco Group shows week fundamentals and a bad technical configuration.

The stock is overvalued, with a P/E ratio of 37.2x in 2015. Moreover, analysts covering the stock mainly have seller bias, and keep downgrading their EPS estimates, which shows their pessimism.

Graphically, the stock evolves in a bearish trend on all time scales. Moving averages are negatively oriented. Prices have recently broken the GBp 170.6 support, and are likely to go towards their recent low on the GBp 152.7 support.

Therefore, short positions can be opened on the security in order to benefit from this bearish scenario. The target price will be set at GBp 152.7, and a stop loss will be placed above the GBp 170.6 pivot point.