Serco Group shows relatively strong fundamentals and is coming back to attractive prices.
From a fundamental viewpoint, the security is cheap with a P/E Ratio of 13.99x for 2013 and 12.24x for 2014.
Besides, EV/Sales is low with a ratio at 0.63x for this year.
The security follows a downward trend in the short term, under the GBp 574.5 resistance area.
The stock is forming a double bottom on the GBp 522.5, giving arguments for a technical rebound towards GBp 575. Moreover, the breakout of the 20-day moving average will confirm the buying signal given by the actual technical pattern.
Thanks to the technical configuration and Serco Group’s strong fundamentals, active investors can take a long position at current price. The downside potential is limited and the timing seems perfect to benefit from a technical rebound.
The goals will be fixed at GBp 575.
However, a bearish trend would regain the upper hand if the security crosses GBp 522.5.
Serco Group plc is a United Kingdom-based provider of public services. The Company is specializing in the delivery of essential public services, with people working in defense, transport, justice, immigration, healthcare and other citizen services. The Companyâs operating segments include UK & Europe, Americas, AsPac, Middle East and Corporate. Its UK & Europe segment offers services for sectors, including Citizen services, defense, health & other facilities management, justice & immigration, and transport delivered to UK government, UK devolved authorities and other public sector customers in the UK and Europe. Americas segment offers services for sectors, including citizen services, defense and transport delivered to US federal and civilian agencies, selected state and municipal governments and the Canadian government. Middle East segment offers services for sectors, including citizen services, defense, health & other facilities management, and Transport in the Middle East region.