Valeo : The technical configuration is deteriorating
Entry price | Target | Stop-loss | Potential |
---|
€30.39 |
€27.41 |
€32.41 |
+9.81% |
---|
Valeo's shares show signs of a reversal to the downside. The technical chart pattern has deteriorated and suggests a continuation of the decline.
Summary● The company has solid fundamentals for a short-term investment strategy.
Strengths● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.69 for the 2020 fiscal year.
● The tendency within the weekly time frame is positive above the technical support level at 21.74 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.
● The company has insufficient levels of profitability.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● 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 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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