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 GBp 124.8 GBp in weekly data.
Graphically speaking, the timing seems perfect for purchasing the stock close to the GBp 124.1 support.
The stock, which is currently worth 2018 to 0.36 times its sales, is clearly overvalued in comparison with peers.
Its low valuation, with P/E ratio at 9.38 and 9.83 for the ongoing fiscal year and 2019 respectively, makes the stock pretty attractive with regard to earnings multiples.
Sales forecast by analysts have been recently revised upwards.
The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
As estimated by analysts, this group is among those businesses with the lowest growth prospects.
The group usually releases earnings worse than estimated.
The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
For the last four months, EPS estimates made by Thomson-Reuters analysts have been revised downwards.
For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
Below the resistance at 160.5 GBp, the stock shows a negative configuration when looking looking at the weekly chart.