KERING ● The company has poor fundamentals for a short-term investment strategy.
Strengths
● The group's high margin levels account for strong profits.
● The company is in a robust financial situation considering its net cash and margin position.
● The group usually releases upbeat results with huge surprise rates.
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.
● The stock is close to a major daily resistance at EUR 600, which should be gotten rid of so as to gain new appreciation potential.
● The company's enterprise value to sales, at 5.74 times its current sales, is high.
● With a 2020 P/E ratio at 40.2 times the estimated earnings, the company operates at rather significant levels of earnings multiples.
● For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
● For the last twelve months, the trend in sales revisions has been clearly going down, which emphasizes downgraded expectations from the analysts.
● For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.
● 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.
