BG GROUP : Time to sell
Entry price | Target | Stop-loss | Potential |
---|
GBX 923.6 |
GBX 0 |
GBX 971 |
+100% |
---|
BG Group should enter in a new bearish trend in the coming trading sessions.
Compared to its peers, the company seems overvalued. It has a 3.78x EV/Sales ratio and the security is currently trading 21.9 times its EPS. Furthermore, analysts covering the stock keep downgrading their EPS estimates.
Graphically, the security is trading in a bearish trend in the medium and long terms. In the short-term, the technical rebound on the GBp 794.7 support area toward the GBp 963 mid-term resistance seems over, and this last threshold is likely to stimulate a bearish movement towards the GBp 880.9 support.
Therefore, fragile fundamentals and technical pattern let see a downside potential. Investors can take a short position and aim a return to the GBp 880.9 support area. A stop loss will be fixed above GBp 963 because a breakout of this threshold would invalidate this trading strategy.
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.