Colruyt Group N.V. : Accumulation phase
Entry price | Target | Stop-loss | Potential |
---|
€36.62 |
€0 |
€34.82 |
-100% |
---|
From a fundamental viewpoint, the security is cheap with a P/E Ratio of 15.6 for 2016 estimates. Besides, EV/Sales is low with a ratio at 0.59x for the same period. Perspectives on the activities of the supermarkets group are encouraging with a 4.2% increase of sales anticipated for this year with revenue expected to exceed EUR 9 billion.
Technically, the security is in a negative configuration as shown by the bearish trend daily moving averages. Nevertheless, the stock seems to have entered into a consolidation phase, close to its EUR 36.05 strong support. This level might stop the bearish trend in the short term and enable a rebound towards EUR 39.
Considering technical and fundamental elements, it seems to be an appropriate timing to immediately open a long position in order to benefit from the EUR 36.05 support area. The target will then be EUR 39 for a stop loss placed under the EUR 36.05 support.
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