Sodexo : Close to a support level
Entry price | Target | Stop-loss | Potential |
---|
€101.2 |
€105.8 |
€98.3 |
+4.55% |
---|
Shares in Sodexo are retreating towards the lower bound of a horizontal trading range. Investors could use the proximity of this support area to initiate new long positions.
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.
● As regards fundamentals, the enterprise value to sales ratio is at 0.72 for the current period. Therefore, the company is undervalued.
● The tendency within the weekly time frame is positive above the technical support level at 96.16 EUR
Weaknesses● The company does not generate enough profits, which is an alarming weak point.
● Most analysts recommend that the stock should be sold or reduced.
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