Fundamentals and technical situation might facilitate a prolongation of the rebound.

From a fundamental viewpoint, analysts anticipate better sales and margins. They have regularly revised upward their EPS estimates, which should reach EUR 0.57 in 2014 compared to EUR -0.33 in 2013. The financial situation should significantly improve, with a leverage at 1.39x for 2014 compared to 2.16x in 2013. The group benefits from excellent valuation levels, with a P/E ratio at 16.2x for the current fiscal year, and an "EV/sales" ratio at 0.38x for the same period.

Graphically, USG People is oversold near EUR 8.9. The recent rebound close to the support should continue, and the stock could find new energy to rise towards the EUR 9.8 resistance. Once this threshold is crossed, the target will be extended to the midterm resistance at EUR 10.7.

The trading strategy can benefit from the proximity of the strong support currently tested in order to buy USG People in a good timing to target EUR 10.7. Investors might place a stop loss order at EUR 8.4 in order to avoid important losses.