As we know, the last year has been very difficult for equity investments. The energy crisis, the war between Russia and Ukraine, the sharp rise in inflation and much more, have had a strong impact on world indices.
However, there have been some stocks that have suffered less and that have done better than the average of the Italian market. Let’s go, therefore, to see the forecasts on shares that have beaten the Italian index in the last year.
In this report we will discuss the Brunello Cucinelli stock which in the last year has gained 6.6% against an Italian index which has lost 17.8%.
The valuation of the stock according to the fundamental analysis.
The analysis based on the company’s fundamentals has always returned a very overvalued stock, but this result is nothing new for Brunello Cucinelli. For example, the group’s valuation in terms of multiples of earnings (PE) is a factor about 4 times higher than the average of the reference sector. In fact, the company is currently valued at 65.9 times the net earnings per share forecast for the current year, while the average of its competitors is 15.6x. Furthermore, that of Brunello Cucinelli is the highest EP ever in the reference sector. Also the ratio between price and turnover is not only higher than the sector average, but it is large in absolute terms, being above 4.9.
As reported in specialized magazines, the average target price resulting from analysts’ recommendations is in line with current prices.
Forecasts on stocks that have beaten the Italian index in the last year: the indications of the graphical analysis
The title Brunello Cucinelli (MIL: BC) closed the session on 20 September with an increase of 0.49% compared to the previous close, at 51.70 euros.
With the close of September 20, the stock could finally have reversed to the upside (dotted line). A confirmation in this sense could come from a daily closing above 52.05 euros.
The bears, on the other hand, could gain strength from a daily close below € 49.71. In this case, the price targets could be those indicated in the figure by the solid line.
Inflation brings down gold prices which could accelerate to the downside