The recent downward movement has sent Renault shares back to attractive levels situated around 82.58 EUR. This zone could put an end to the downward movement and offers a good timing for new long positions. Investors have an opportunity to buy the stock and target the € 88.4.
The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
In a short-term perspective, the company has interesting fundamentals.
Renault accounts for 4.02 % of our European Portfolio. A trade is currently open since 04/09/2015 with a purchase price of € 87.13. Discover the other 19 stocks of the European portfolio managed by the 4-traders portfolio management team.
Share prices are approaching a strong support area in daily data, which offers good timing for investors.
Historically, the company has been releasing figures that are above expectations.
The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.33 for the 2018 fiscal year.
Its low valuation, with P/E ratio at 5.28 and 5.01 for the ongoing fiscal year and 2019 respectively, makes the stock pretty attractive with regard to earnings multiples.
The company is one of the best yield companies with high dividend expectations.
The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
With relatively low growth outlooks, the group is not among those with the highest revenue growth potential.
For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.