In the past few sessions, Greggs plc shares have suffered from a sharp fall and are now coming back on significant level support.
From a fundamental viewpoint, the company seems undervalued relatively to its peers with a EV/Sales of 0.6.
However, analysts have revised slightly downward their earnings forecasts. With an EPS estimated at GBp 40.1 for this year and GBp 42.78 for the next year, Greggs is currently paid 11.29 and 10.58 times the results.
The security follows a downward trend in the short term, under the GBp 466 resistance area. However, the selling pressure could run out of steam soon. Indeed, whereas the stock shows an oversold condition, the GBp 449 support area currently tested might stop the bearish trend in the short term.
The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Greggs in a good timing. Investors might placed a stop loss order at GBp 435.5 in order to avoid important losses.
Disclaimer: 4-traders.com is a website published by SURPERFORMANCE SAS. Surperformance or 4-traders.com is not a registered broker-dealer nor a registered investment adviser. You understand that this web site and its content is furnished for your personal, noncommercial, informational purposes only, and that no mention of a particular security in this website constitutes a recommendation to buy, sell, or hold any other security, nor that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Surperformance and 4-traders.com services will not advise you personally concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. Information regarding trading and investment as provided by Surperformance professional is not tailored to the investment needs of any specific person. You acknowledge that you are responsible for your own financial decisions and should seek a registered financial agent depending on your own risk tolerance to advise you on your personal trading activities.
Manufactures and sells sandwiches, savouries and other baker-fresh foodGreggs Plc is a bakery retailer in the UK. It offers sandwiches and freshly baked savouries such as Pasties and Bakes, Sandwiches, Bread, Platters, Sweet, Biscuits and Bakes and Drinks and Snacks.The company was founded by John...