E.ON shares are reaching an interesting resistance zone. The current technical chart pattern suggests that a breach of this level could lead to new upside potential. Investors have an opportunity to buy the stock and target the € 10.2.
The company has solid fundamentals for a short-term investment strategy.
The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
Its low valuation, with P/E ratio at 6.37 and 13.92 for the ongoing fiscal year and 2018 respectively, makes the stock pretty attractive with regard to earnings multiples.
This company will be of major interest to investors in search of a high dividend stock.
For the past twelve months, EPS forecast has been revised upwards.
For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
Within the weekly time frame the stock shows a bullish technical configuration above the support level at 7.48 EUR
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.
Technically, the stock approaches a strong medium-term resistance at EUR 9.69.
According to Thomson-Reuters' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
The company is in debt and has limited leeway for investment
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.
Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.
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