In this article, I will analyze five companies that stand out for their solid financial fundamentals and whose technical behavior suggests an attractive purchasing opportunity. These companies not only display robust financial performances, but also present a very interesting price curve from a technical point of view for investors who direct their investments over the medium and long term.
Teleperformance
I’ll start with French multinational Teleperformance, the global leader in the fragmented outsourced customer service market, with an estimated 6% market share. It employs more than 500,000 associates in 71 countries, serving more than 160 markets in over 240 languages. The vast majority of customer interactions consist of inbound requests for customer service and technical support.
Teleperformance is the benchmark operator in terms of growth and margins and should continue to capture a disproportionate share of the sector’s growth. Any serious disruptive threats related to artificial intelligence could dissipate in the medium term.
From a technical point of view, what catches my attention is the fact that the drop that is required in the value, compared to the maximum that was established at the beginning of 2022 around 400 euroshas not moved the stock by more or less than 80% from this historical level and has served to correct a little more than the 78.60% Fibonacci of the entire broad upward movement of the last decade, which led to the stock of 13 euros (2021 minimums) to 400 euros (2022 maximums). It is still premature to point out that the lows marked at 80 euros were the floor of the bearish trend of recent years, but many technical evidences are beginning to point in this direction.
That is why my recommendation is that they take advantage of a drop that brings the stock closer to this support of 80 euros, which was at the origin of the last rebound until 120 eurosto set foot. He stop I would make the connection with Teleperformance which does not close a month below these 80 euros. I would use a monthly filter to avoid missteps, especially after a previous drop of 80%, so everything indicates that there is more to gain than to lose.
Only if Teleperformance recovers a simple Fibonacci 23.60 or 38.20% of the fall from 400 to 80 euros, it would mean witnessing a rebound at the level 150 and 200 euroswhich are at 60 and 115% of the levels where it is currently trading.
Danone
Danone was founded in Barcelona in 1919 and moved to Paris in 1929. This leading food and beverage company has a strong brand portfolio in five segments: dairy (Activia, Danone, HiPro/YoPro, Dane-tte, Actimel); plant-based beverages and coffee creamers (Silk, Alpro, International Delight); waters and hydration (Evian, Volvic, Mizone in China); infant formula and baby food (Aptamil); and medical nutrition. Danone is the world’s number 1 (by value) in fresh dairy products, number 1 in plant-based foods and beverages, number 2 in infant nutrition and number 3 in packaged waters.
Technically, Danone had long had in mind to return to the levels where it was trading in 2019 around 70 euros. Until then, there is still a margin of increase of 10% and the idea would not be to seek only this objective but a situation of absolute free increase above this level. Indeed, when in 2012 it exceeded the ceilings set in 2008 in the 37 eurosAfter having developed a classic corrective phase like the one we have seen in recent years, the title has only found a ceiling at those 70 euros is 90% of the trip. In the long term, I would expect a move of similar magnitude that could bring Danone into the zone of 130 euros…
Operationally, it could already set foot in the current price zone, especially if it were to look for support again at 60-61 euros. From there, we are looking for first targets at 70 euros with a stop linked to the non-filling of the gap opened from 58.80 euros, the closing of which would not make much sense.
British Petroleum (BP)
The collective challenge for major oil companies is to transition to the energy system of the future, while facing a higher cost of capital than their competitors focused exclusively on clean energy. The first pillar of the investment case must be to protect the cost of capital through a credible long-term energy transition strategy. The second pillar is a significant cash rebate. The third pillar, which no major oil company has yet demonstrated but which is necessary for both BP and the industry to improve its valuation, is the ability to invest profitably and at scale in new low-carbon energy. BP is investing proportionately more than its peers in the energy transition, seeking to deploy at least 30% of its capital in this area by 2025.
Technically, the BP price has been consolidating its positions sideways for 18 months in a wide price range that has 4.16 pounds as a base and support and 5.25 pounds as a ceiling and resistance. It draws my attention to the fact that at the moment it is at the bottom of this lateral channel and that is why an entry seems optimal to me to put a foot in search of being able to push up from this support towards the roof of the lateral, which is a matter of time that ends up being overcome to enter the free climb. We would not only expect a 25% rise towards this ceiling, but also a definitive break that would open the door to increases towards 6.75 pounds.
Anheuser-Busch (ABI)
With sales approaching $58 billion, ABI is the world’s largest brewer, controlling 25% of global volume and generating over 30% of total industry EBIT. The company is the result of successive business combinations carried out by its iconic Brazilian owners (3G Capital). The most significant were Anheuser Busch in 2008, Modelo in 2013 (for $31 billion) and SABMiller in 2016 (USD 100 billion). ABI owns over 500 beer brands, including global names such as Budweiser, Corona and Stella Artois; regional names such as Beck’s, Castle, Hoegaarden and Leffe; and several recently added local and craft brands.
Its price curve seems to me a feast for the eyes since the title is part of an ascending triangular figure, whose bullish guideline has guided the increases millimetrically since the lows of 2022. As long as it does not lose this guideline, for which it should abandon 57 euros, where I would place the stop, I recommend buying by looking for it to overcome the horizontal resistance of the triangle at 67 euros. Above 67 euros, the target to seek would be 100 euros. Excellent risk-return equation by buying in the current price zone around 61.50 euros.
