John Wood Group PLC : An appropriate purchase level
Entry price | Target | Stop-loss | Potential |
---|
GBX 685.78 |
GBX 0 |
GBX 659 |
-100% |
---|
John Wood 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 12.92x for 2013 and 12.25x for 2014.
Besides, EV/Sales is low with a ratio at 0.63x for this year.
John Wood is oversold and near to GBp 666.5 with a bullish trendline supporting the stock. This situation gives credit to a potential technical rebound. Thus, the share could find new energy and would rise towards the next GBp 722.5 resistance.
Considering technical and fundamental elements, it seems to be an appropriate timing to immediately take a long position in John Wood in order to benefit from the GBp 666.5 support area. A first target price will be the GBp 722.5 resistance. A stop loss order will be placed under the mid-term support currently tested. Only a crossing of GBp 722.5 would validate a bullish trend in order to aim a higher target price.
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