X5 Retail Group : Close to a key resistance level

06/04/2020 | 03:35am EST

Patrick Rejaunier

long trade Target price hit

Entry price : 31.04$ | Target : 37.2$ | Stop-loss : 29.36$ | Potential : 19.85%

X5 Retail Group is close to a major resistance level, whereby the breach of this level could be considered as a buy signal. This reflects our preferred scenario in light of the stock's current technical chart pattern. Investors have an opportunity to buy the stock and target the $ 37.2.

Summary

• The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
• In a short-term perspective, the company has interesting fundamentals.

Strengths

• Growth is a substantial asset for the company, as anticipated by dedicated analysts. Within the next three years, growth is estimated to reach 49% by 2022.
• The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.67 for the 2020 fiscal year.
• This company will be of major interest to investors in search of a high dividend stock.
• Analysts covering this company mostly recommend stock overweighting or purchase.

Weaknesses

• The company sustains low margins.
• Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
• 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, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.
• For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.
• For the past year, analysts have significantly revised downwards their profit estimates.

© MarketScreener.com 2020

	Stocks mentioned in the article	Change	Last		1st jan.
	AT HOME GROUP INC.	10.20%	24.75		45.28%
	JUST GROUP PLC	2.70%	79.75		11.09%
	THE NEW HOME COMPANY INC.	0.37%	5.5		16.84%
	WILL GROUP, INC.	1.40%	1017		1.09%
	X5 RETAIL GROUP	-0.26%	38		5.48%

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