Sumo Group : The underlying trend is in force again
Entry price | Target | Stop-loss | Potential |
---|
GBX 155.5 |
GBX 170 |
GBX 150 |
+9.32% |
---|
Sumo Group Plc shares show a positive technical situation which suggests a continuation of the upward dynamic over the medium term.
Summary● In a short-term perspective, the company has interesting fundamentals.
Strengths● The prospective high growth for the next fiscal years is among the main assets of the company
● The group's high margin levels account for strong profits.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● For the last few months, EPS revisions have remained quite promising. Analysts now anticipate higher profitability levels than before.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
Weaknesses● The stock is close to a major daily resistance at GBp 162.5, which should be gotten rid of so as to gain new appreciation potential.
● The group usually releases earnings worse than estimated.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● With an expected P/E ratio at 33.81 and 24.15 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
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