Wincanton’s share price was heavily penalized and is now in an oversold situation near to a solid support area.

From a fundamental viewpoint, Wincanton seems undervalued in terms of enterprise value. Based on the current price, its market capitalization, plus its net debt, represents 0.23 times its revenues.
This valuation is only 11.05 and 9.43 times the two next years earnings.

Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average, currently at GBp 155.2, shows. Nevertheless, the stock seems in an oversold situation, near to its GBp 148.3 support in daily data. This level might stop the bearish trend in the short term.

Thanks to the technical pattern and Wincanton’s low valuation, active investors can open long positions above GBp 148.3. The downside potential is limited and the timing seems perfect to benefit from a technical rebound.
The goals will be fixed at GBp 159.3 in a first time and then at GBp 168.4.
However, a bearish trend would regain the upper hand if the security crosses GBp 148.3.