VALEO ● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at EUR 38.2 EUR in weekly data.
● Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 38.02 support.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● Historically, the company has been releasing figures that are above expectations.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.56 for the 2018 fiscal year.
● Its low valuation, with P/E ratio at 9.66 and 8.47 for the ongoing fiscal year and 2019 respectively, makes the stock pretty attractive with regard to earnings multiples.
● The company is one of the best yield companies with high dividend expectations.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses
● For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● For the past seven days, analysts have been lowering their EPS expectations for the company.
● For the last four months, EPS estimates made by Thomson-Reuters analysts have been revised downwards.
● For the past year, analysts have significantly revised downwards their profit estimates.
● Below the resistance at 49.16 EUR, the stock shows a negative configuration when looking looking at the weekly chart.
