Today was a double sided day for the markets, first rise and then retracement. But at the moment we do not see any dangers, indeed we believe that there are all the conditions for further climbs.
We report that an undervalued stock of more than 100% is ready to start rising.
When underestimation and graph indicate that the direction could be the same that is an extraordinary signal to trade. Who is in this particular pattern?
We refer to Fresenius (MIL: FRE) company listed both on Piazza Affari and on the German Dax. It is a group that provides healthcare, dialysis products worldwide.
Why is our attention turned to this society?
The analysts’ consensus estimates a target price at 50.47 while the estimates referable to the discounted cash flow calculate a fair value price at 110.47. A truly remarkable underestimation today!
Is it time to buy?
Let’s check. Why do we report that an undervalued stock of more than 100 is ready to start rising and this is just Fresenius?
The answer is really simple and if you follow us you will come to our own conclusions.
The stock ended the trading day at 45.90 +4.72 with increasing volumes. Today’s movement in percentage terms was above the average of the last few days and occurred at an ideal time to start the prices rising. We observe on the chart a recent phase of laterality from 20 May this year.
The explosion of momentum today in our opinion must be assessed as the beginning of a bullish directional phase and therefore we are preparing to buy the stock.
Trading strategy
The title comes from a drop of a few years, in fact in 2017 it touched the maximum at 79.65. Buy Fresenius on the market with stop loss at 43.49. The first target is placed at 51.45 and then 69.00. The recommendation of our Research Department is to buy and maintain for a long time.
It seems like a really good opportunity. As usual then we will follow the events and they will give us reason or not.
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