Paradox Interactive AB (publ) shares are trading close to a major technical resistance, which, if broken, could yield new upside potential and an increase in volatility. This scenario can be anticipated. Investors have an opportunity to buy the stock and target the SEK 260.
The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
According to sales estimates from analysts polled by Standard & Poor's, the company is among the best with regard to growth.
Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
Thanks to a sound financial situation, the firm has significant leeway for investment.
Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
The group usually releases upbeat results with huge surprise rates.
Over the last seven days, analysts have been revising upwards their EPS estimates for the company.
Within the weekly time frame the stock shows a bullish technical configuration above the support level at 162 SEK
Stock prices approach a strong long-term resistance in weekly data at SEK 220.
Technically, the stock approaches a strong medium-term resistance at SEK 219.4.
Based on current prices, the company has particularly high valuation levels.
The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 43.06 times its estimated earnings per share for the ongoing year.
The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
The three month average target prices set by analysts do not offer high potential in comparison with the current prices.
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