The current trading zone is interesting to the point that investors should pay attention to the stock and anticipate a return of the underlying upward trend.
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
● Its core activity has a significant growth potential and sales are expected to surge, according to Standard & Poor's' forecast. Indeed, those may increase by 50% by 2022.
● Historically, the company has been releasing figures that are above expectations.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● The tendency within the weekly time frame is positive above the technical support level at 971.5 GBp
Weaknesses
● Stock prices approach a strong long-term resistance in weekly data at GBp 1247.
● Technically, the stock approaches a strong medium-term resistance at GBp 1257.
● With a 2020 P/E ratio at 33.07 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
● The company's sales previsions for the coming years have been revised downwards, which foreshadows another slowdown in business.
● The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.
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Softcat plc is a United Kingdom-based provider of information technology (IT) solutions and services. The Company is an IT reseller and IT infrastructure solutions provider to the corporate and public sector markets. The Company helps commercial and public sector organizations design, procure, implement and manage their digital infrastructure. Its offers solutions, including virtual desktop and applications, supply chain operations, software licensing, security, IT asset management, lifecycle solutions, data center and private cloud, financial solutions, cloud, networking and connectivity, and others. It is engaged in designing, implementing and supporting a mix of private and public cloud, optimized for individual customer needs. It provides assessment services as well as implementing and managing solutions. It designs and implements tools and applications for business environments. The Company sells cloud computing solutions, which include Software as a Service (SaaS).