UK stock alert

UK

Morning Alert: Countrywide hits 52-week low fifth time in two months 19 January 2018 11:48 GMT

NEWS BITES - EUROPE

Countrywide PLC (L:CWD) hit a 52-week low of GBX104.60 earlier today for the fifth time in the past two months, but later rebounded higher to GBX105.60.

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

+ The stock has underperformed 95% of the United Kingdom market over the past 6 months.

+ In the last three months the stock has hit a new 52-week low five times, pointing to a downtrend.

+ The price plummeted 22.2% in the last week and 12.0% in the last month.

+ The present value of GBP1,000 invested one year ago is GBP618 [vs GBP1,072 for the FTSE 100 Index].

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

Overvaluation:

+ Return on Assets 1.8% [2.7%]

+ Return on Capital Employed 3.4% [4.4%]

+ Return on Equity 3.7% [4.7%]

Other Bearish Signals include:

+ Net profit margin has averaged 5.9% in the last 3 years. This is lower than the sector average of 35.3% and suggests a low margin of safety.

Note

Bullish Signals:

The positive 1.05 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

Tobin's Q Ratio is 0.3. Compared with the rest of the market the stock is undervalued.

Earnings per share growth rate has shown signs of recovery in recent years.

Oversold/Bullish:

The 1.0% premium to 12-month low of GBX104.60 against the 47.1% discount to high of GBX199.50 suggests the decline might be bottoming.

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

Undervaluation:

Price/Sales of 0.4 [4.2]

Countrywide PLC (L:CWD; LON:CWD; LN:CWD)

ISIN: GB00B9NWP991

PermID: 4295899016

Source: www.BuySellSignals.com