UK Mail' stock benefit from a steady bullish trend since mid-2012.
The company shows strong fundamentals. Firstly, the security is undervalued compared to its peers with an EV/Sales ratio estimated at 0.62x by the Thomson Reuters consensus for this year. Moreover, the consensus revised upward EPS estimates for this year (approximately +30% since September 2012) and that let see a great potential for the security on the stock market.
Technically, the security shows a bullish configuration on all time scales. Prices are supported by increasing moving averages. In weekly data, 20-week moving average helps the stock to keep its uptrend.
According to both technical and fundamental elements, it seems opportune to take a long position. Ideally, the position will be taken upon comeback to the 20-day moving average, around GBp 610. The trend trend should allow the security to reach GBp 700, corresponding to the bullish trend line. A stop loss will be placed under the GBp 610 short term support to avoid a downtrend.
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