Siemens Gamesa Renewable Energy, S.A. shares are closing in on important technical levels. The technical chart pattern suggests that the currently tested resistance will be broken and new upside potential arises while volatility is likely to increase. Investors could get ahead of this signal in order to benefit from a better risk/reward ratio. Investors should benefit from the breakout of the € 23.8 level to target the € 26.7.
For a short-term investment strategy, the company has poor fundamentals.
Within the weekly time frame the stock shows a bullish technical configuration above the support level at 15.55 EUR
Technically, the stock approaches a strong medium-term resistance at EUR 23.26.
Low profitability weakens the company.
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.
The group usually releases earnings worse than estimated.
The company is not the most generous with respect to shareholders' compensation.
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 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.
The appreciation potential seems limited due to the average target prices set by the analysts covering the stock.
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