The timing appears opportune to go long in shares of Grupo Catalana Occidente, S.A. as we anticipate another pick-up in the underlying trend.
Summary
● In view of fundamental criteria, the company is among low performers as far as mid or long-term investment strategy is concerned.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● Considering the small differences between the analysts' various estimates, the group's business visibility is good.
● The company's attractive earnings multiples are brought to light by a P/E ratio at 14.24 for the current year.
● For the past twelve months, EPS forecast has been revised upwards.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 22.75 EUR
Weaknesses
● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.
● As estimated by analysts, this group is among those businesses with the lowest growth prospects.
Grupo Catalana Occidente SA is a Spain-based company engaged in the insurance and reinsurance sectors. The Company's activities are divided into three business segments: Life insurance, Non-life insurance and Others. The Life insurance division offers insurance policies related to health and life coverage. The Life insurance division provides property, vehicle, home, casualty and credit guarantee insurance, among others. The Others division includes services offered by Atradius NV, such as credit insurance and reinsurance, financial advisory and debt collection. The Company operates through Grupo Previsora Bilbaina, Azkaran SL, Seguros Catalana Occidente Sociedad Anonima de Seguros y Reaseguros, Grupo Compania Espanola de Credito y Caucion SL and Bilbao Compania Anonima de Seguros y Reaseguros SA, among others. The Company is a subsidiary of Inoc SA.