AB Volvo : Towards the breakout of a major resistance level
Entry price | Target | Stop-loss | Potential |
---|
SEK 207.2 |
SEK 234.69 |
SEK 190 |
+13.27% |
---|
AB Volvo shares are trading close to a major technical resistance, which, if broken, could yield new upside potential and an increase in volatility. This scenario can be anticipated.
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● The company is in a robust financial situation considering its net cash and margin position.
● The group usually releases upbeat results with huge surprise rates.
● As regards fundamentals, the enterprise value to sales ratio is at 1.09 for the current period. Therefore, the company is undervalued.
● Sales forecast by analysts have been recently revised upwards.
● For the past twelve months, EPS forecast has been revised upwards.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 144.4 SEK
Weaknesses● According to Standard & Poor's' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● The company is not the most generous with respect to shareholders' compensation.
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