Staples, the largest U.S office suppliers had published fourth quarter profit to $283.6 million from $274.7 million a year ago. Thomson Reteursconsensus expected $279 million.
However Staples management expects for 2012, a slow growth in the U.S economy and a soft demand environment in Europe. Currently, the company is trading at a low level compared to historic benchmark as shown by the ratio enterprise value/revenue at 0.44x. Besides, the EPS estimates are equal for the last 6 months.
In early march, after several attempts the stock has successfully breaks through the USD 15.5 technical line. After that, this movement has entailed an impetus to the USD 16.85 resistance. Then, a profit taking phase is occured and the share has fallen to USD 15.4.
For a trading strategy, market participants can anticipate a technical rebound bolstered by 50-days moving average up which could push the share to the USD 16.85. It would be advisable to buy the stock at the current price but if the security falls below USD 15, this strategy will be cancelled.