The stock is close to a strong resistance level and poor fundamentals suggest a price correction in coming sessions.
From a fundamental viewpoint, the company's activities offer little revenue growh perpesctives and analysts have revised downward their sales and EPS estimates. The group seems overvalued as suggested by its P/E ratio at 18.8 for current year estimates and an EV/EBITDA ratio at 12.7.
Graphically, the share is in a period of technical rebound that allowed it to reach the USD 82.95 mid-term resistance. This area could trigger a sell signal for investors in case of profit-taking. In fact, it represents the top of the trading range with encompass prices since early 2014. Thus, the downward movement could bring the stock back to USD 77.30 during the upcoming sessions.
The upside seems limited as shown by fundamentals and technical configuration. In contact with the USD 82.95 resistance, a movement of consolidation could return the stock towards the USD 77.3 mid-term support. As a result, the most aggressive investors could take a short position near USD 82.9 but they need to set a stop loss above this resistance because the crossing of this level would invalidate our scenario.