(ALO) Alstom S.A. - Ratings and Ratios

Alstom S.A. is a global leader in the rail transport industry, providing comprehensive solutions across various regions, including Europe, the Americas, Asia, and Africa. The companys extensive product portfolio encompasses rolling stock, signaling, and asset management, as well as services such as maintenance, modernization, and overhaul. Alstoms offerings cater to diverse customer needs, from people movers and monorails to high-speed trains and locomotives, and include cutting-edge technologies like cybersecurity, connectivity, and digital passenger solutions.

With a rich history dating back to 1928, Alstom has established itself as a pioneer in the rail industry, with a strong presence in France and a global footprint. The companys commitment to innovation is reflected in its diverse range of components, including bogies, motors, and generators, as well as its green traction solutions and hydrogen and battery solutions. Alstoms comprehensive services and products enable customers to optimize their rail networks, improve efficiency, and reduce environmental impact.

From a technical analysis perspective, Alstoms stock (ALO) is currently trading at €19.06, with a 20-day simple moving average (SMA) of €19.74 and a 50-day SMA of €19.96. The stocks average true range (ATR) is €0.74, indicating a moderate level of volatility. Given the current price action and technical indicators, a potential trading opportunity may arise if the stock breaks above its 20-day SMA, potentially targeting the 52-week high of €26.02.

Fundamentally, Alstoms market capitalization stands at €9.07 billion, with a price-to-earnings (P/E) ratio of 61.71 and a forward P/E of 10.93. The companys return on equity (RoE) is currently negative at -2.63%. Considering the fundamental data and assuming a recovery in RoE, a potential forecast for Alstoms stock could be a price target of €22.50, representing a 18% upside from current levels. This forecast is based on a combination of the companys improving earnings prospects and a potential reversion to its historical average P/E ratio.

Combining technical and fundamental analysis, a potential trading strategy could involve monitoring Alstoms stock for a breakout above its 20-day SMA, while keeping a close eye on the companys earnings announcements and RoE improvements. If the stock breaks out and the companys fundamentals continue to improve, a long position could be considered, with a target price of €22.50 and a stop-loss below the 50-day SMA.