The timing appears opportune to go long in shares of Cranswick plc as we anticipate another pick-up in the underlying trend.
Summary
● 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
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
● Historically, the company has been releasing figures that are above expectations.
● Sales forecast by analysts have been recently revised upwards.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For the last week, the earnings per share forecast has been revised upwards. According to recent estimates, analysts give a positive overview of the stock
● Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Analysts covering this company mostly recommend stock overweighting or purchase.
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 benefits from high valuations in earnings multiples.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.
Cranswick plc is a United Kingdom-based food producer company, which is engaged in manufacturing and supplying food products to United Kingdom grocery retailers, the food service sector and other United Kingdom and global food producers. It offers various products, such as fresh pork, fresh chicken, coated chicken, ready-to-eat chicken, gourmet sausage, gourmet bacon and gammon, gourmet pastry, cooked meats, charcuterie, olives and antipasti, ambient Mediterranean, and houmous and dips. Its brands include Bodega, Cypressa and Ramona. The Bodega brand provides snacks and sharing boxes, which are available in Italian, German and Spanish flavors. The Cypressa offers olives, antipasti, olive oils and vinegars, cheese, tahini, nuts, seeds and dried fruits; cereals and pulses; snacks and sweets; and wrap kits. The Ramona brand's products include houmous, falafel, dips and burgers. It also produces pet food and supplies a number of brands, including its own brands, Vitalin and Alpha Feeds.