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.
As regards fundamentals, the enterprise value to sales ratio is at 1.07 for the current period. Therefore, the company is undervalued.
The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
The stock is in a well-established, long-term rising trend above the technical support level at 7.79 EUR
Technically, the stock approaches a strong medium-term resistance at EUR 10.04.
As estimated by analysts, this group is among those businesses with the lowest growth prospects.
The company is in debt and has limited leeway for investment
Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
The company's earnings releases usually do not meet expectations.
For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
For the last few months, analysts have been revising downwards their earnings forecast.