● The company has solid fundamentals for a short-term investment strategy.
Strengths
● The company shows low valuation levels, with an enterprise value at 0.61 times its sales.
● For several months, analysts have been revising their EPS estimates roughly upwards.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
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.
● According to forecast, a sluggish sales growth is expected for the next fiscal years.
● The company does not generate enough profits, which is an alarming weak point.
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● For the past year, analysts have significantly revised downwards their profit estimates.