German stock alert

GFR

Afternoon Alert: Continental drops 2.4% 21 July 2017 13:15 CEST

NEWS BITES - EUROPE

Continental AG (ETR:CON) traded on volume of 0.5 times average so far today while the price dropped EUR4.75 (or 2.4%) to trade at EUR193.0.

Current indications of bearish signals that support the trend in the unusual trading:

+ The negative 0.04 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

+ Price to Book of 6.5 [3.1]

+ Price/Sales of 0.9 [0.7]

+ Price/Earnings of 13.8 [12.4]

Other Bearish Signals include:

+ Tobin's Q Ratio is 1.1. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

Note

Continental today is at a discount of 8.2% to the 12-month high of EUR210.35 on 12 May, 2017. It is at a premium of 24.6% to the 12-month low of EUR154.93 on 10 Nov, 2016.

The stock has underperformed 60% of the Xetra market over the past 6 months.

Bullish Signals:

In the last three months the stock has hit a new 52-week high seven times, pointing to a significant uptrend.

Interest cover is less leveraged at 19.2 times.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Dividend yield of 2.2% [0.6%]

Return on Capital Employed 18.6% [13.5%]

Continental AG (DE:CON; ETR:CON; GR:CON)

ISIN: DE0005439004

PermID: 4295869236

Source: www.BuySellSignals.com