EssilorLuxottica : Close to a key level on the weekly chart
Entry price | Target | Stop-loss | Potential |
---|
€121.65 |
€130 |
€115 |
+6.86% |
---|
The decline over the past weeks has brought the price of EssilorLuxottica shares back to an important technical support level at 119.1 EUR. This represents an opportunity to take advantage of these prices levels.
Summary● The company has poor fundamentals for a short-term investment strategy.
Strengths● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at EUR 119.1 EUR in weekly data.
● Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 121.7 support.
● The tendency within the weekly time frame is positive above the technical support level at 119.1 EUR
Weaknesses● With an enterprise value anticipated at 3.27 times the sales for the current fiscal year, the company turns out to be overvalued.
● With an expected P/E ratio at 35.17 and 28.56 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● The company is not the most generous with respect to shareholders' compensation.
● For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.
● For the past year, analysts have significantly revised downwards their profit estimates.
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.