Philips Lighting shares reflect an interesting technical chart pattern from a medium term view In fact, the support at 25.69 EUR represents an important technical support area based on weekly price data that could limit downward movements by the stock.
Strengths
● The share is getting closer to its long-term support in weekly data, at EUR 25.69, which offers good timing for buyers.
● The close medium term support offers good timing for purchasing the stock.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.59 for the 2018 fiscal year.
● With a P/E ratio at 12.86 for the current year and 11.9 for next year, earnings multiples are highly attractive compared with competitors.
● This company will be of major interest to investors in search of a high dividend stock.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● According to Thomson-Reuters' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● 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.
● The underlying tendency is negative on the weekly chart below the resistance at 31.33 EUR
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Signify N.V. is the world leader in lighting for professionals and consumers and lighting for the Internet of Things. Its Philips products, Interact connected lighting systems and data-enabled services, deliver business value and transform life in homes, buildings and public spaces. Signify N.V. has 31,920 employees and operates in 74 countries. The company unlocks the extraordinary potential of light for brighter lives and a better world. Net sales break down by family of products as follows:
- luminaires and lighting systems for professionals (58.7%): to Public, Office & Industry and Retail & Hospitality;
- LED lamps, functional domestic luminaires and connected home lighting (31.6%);
- conventional lamps and professional electronics (9.4%);
- other (0.3%).
Net sales are distributed geographically as follows: the Netherlands (7.8%), the United States (33%), China (6.7%), Germany (5.8%) and other (46.7%).