Sodexo : The stock approaches again the support level
Entry price | Target | Stop-loss | Potential |
---|
€100.6 |
€104.05 |
€98.5 |
+3.43% |
---|
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.
● In a short-term perspective, the company has interesting fundamentals.
Strengths● The share is getting closer to its long-term support in weekly data, at EUR 98.34, which offers good timing for buyers.
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● The company shows low valuation levels, with an enterprise value at 0.68 times its sales.
● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 98.34 EUR
Weaknesses● The company does not generate enough profits, which is an alarming weak point.
● Analysts covering the stock have recently lowered their earnings forecast.
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