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.