Vallourec : The support should not be expected to rein in the decline
SELL
Conditionne
Stop-loss triggered
Entry price | Target | Stop-loss | Potential |
---|
€5.12 |
€4.6 |
€5.3 |
+10.16% |
---|
The downside scenario is the most likely one for stocks in Vallourec, particularly with a breakdown of the support that is currently being tested.
Summary● The company has poor fundamentals for a short-term investment strategy.
Strengths● The share is getting closer to its long-term support in weekly data, at EUR 4.99, which offers good timing for buyers.
● Share prices are approaching a strong support area in daily data, which offers good timing for investors.
● Growth progress expectations are rather promising. Indeed, sales are expected to rise sharply in the coming years.
● Over the last seven days, analysts have been revising upwards their EPS estimates for the company.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 4.99 EUR
Weaknesses● Low profitability weakens the company.
● The group shows a rather high level of debt in proportion to its EBITDA.
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● For the last four months, earnings estimated by analysts have been revised downwards with respect to the next two years.
● For the past year, analysts have significantly revised downwards their profit estimates.
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