FirstGroup shows relatively strong fundamentals and is coming back to attractive prices.

From a fundamental viewpoint, the security is cheap with a P/E Ratio estimated at 10.7x for 2017. Besides, EV/Sales is low with a ratio at 0.49x for this year.

The security follows a downward trend in the short term, under the GBp 103.5 resistance area.
The trend is bearish also in the mid-term, under GBp 103.5. However, the selling pressure could soon run out of steam. Indeed, whereas the stock shows an oversold condition, the GBp 96.35 support area currently tested might stop the bearish trend in the short term.

Considering technical and fundamental elements, it seems to be an appropriate timing to immediately open a long position in FirstGroup in order to benefit from the GBp 96.35 support area. A first target price will be the GBp 103.5 resistance, ie a potential of around 5%. A stop loss order will be placed under the mid-term support currently tested. Only a crossing of GBp 103.5 would validate a bullish trend in order to aim a higher target price.