adidas AG : Towards the breakout of a major resistance level
Entry price | Target | Stop-loss | Potential |
---|
€214.1 |
€235 |
€204.1 |
+9.76% |
---|
adidas shares are reaching an interesting resistance zone. The current technical chart pattern suggests that a breach of this level could lead to new upside potential.
Summary● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
Strengths● Predictions on business development from analysts polled by Thomson-Reuters are tight. This results from either a good visibility into core activities or accurate earnings releases.
● The tendency within the weekly time frame is positive above the technical support level at 189.9 EUR
Weaknesses● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● Technically, the stock approaches a strong medium-term resistance at EUR 216.
● Financial statements have repeatedly disappointed market stakeholders. Most often, they were below expectations.
● The firm trades with high earnings multiples: 25.54 times its 2018 earnings per share.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
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