Mears Group plc : The GBp 383 support area is currently tested
Entry price | Target | Stop-loss | Potential |
---|
GBX 389.5 |
GBX 0 |
GBX 378 |
-100% |
---|
The GBp 383 support, currently tested, should allow Mears Group to rally again.
From a fundamental viewpoint, the company seems undervalued relatively to its peers with a EV/Sales of 0.4.
However, analysts have revised slightly downward their earnings forecasts.
With an EPS estimated at 25.4 GBp for this year and 30.9 GBp for the next year, Mears Group is currently paid 15.1 and 12.43 times the results.
Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average, currently at GBp 398, shows. Nevertheless, the stock seems in an oversold situation, near to its GBp 383 support in daily data. This level might stop the bearish trend in the short term.
The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Mears Group with a good timing. The main target will be placed at GBp 406.5. Investors might place a stop loss order at GBp 378 in order to avoid important losses.
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