CONSTELLIUM SE ● The current area is a good opportunity for investors interested in buying the stock in a mid or long-term perspective. Indeed, the share is moving closer to its lower bound at USD 5.9 USD in weekly data.
● Graphically speaking, the timing seems perfect for purchasing the stock close to the USD 5.1 support.
● The stock, which is currently worth 2017 to 0.52 times its sales, is clearly overvalued in comparison with peers.
● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
● Analysts have consistently raised their revenue expectations for the company, which provides good prospects for the current and next years in terms of revenue growth.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 5.9 USD
Weaknesses
● The company does not generate enough profits, which is an alarming weak point.
● The company is in debt and has limited leeway for investment
● The company's earnings releases usually do not meet expectations.
● For the last twelve months, sales expectations have been significantly downgraded, which means that less important sales volumes are expected for the current fiscal year over the previous period.
● Analysts covering the stock have recently lowered their earnings forecast.
● For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.
● For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
