Can Vodafone Group Plc (VOD) Investors Afford To Be Cautiously Optimistic?

On December 03, 2019, Vodafone Group Plc (NASDAQ:VOD) shares lost -0.94% or -0.18 points to close at $19 with a heavy trading volume of 3.737 million shares. It opened the trading session at $18.8, the shares rose to $19.02 and dropped to $18.76, the range by which the price of stock traded the whole day. The company now has a market cap of $51.2 billion and currently has 2.69 billion outstanding shares. Vodafone Group Plc (VOD) stock has plunged -7.18 percent of market value in 21 trading days.

VOD stock’s trailing 3-year beta is 0.74, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was -$0.82 share in the trailing 52 weeks. The stock’s value fallen -1.45 percent year to date (YTD) compared to a decline of -11.59 percent in 52 week’s period. The firm’s shares are still trading -12.52 percent below its 1-year high of $21.72 and 22.34 percent up from 52-week low of $15.53. The average consensus ranking on the company is 1, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a buy.

Vodafone Group Plc (VOD) is most likely going to rise 48 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $30.81-month high price target. This represents a whopping 62.16 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $24.46, which means a return possibility of 28.74 percent in comparison with the closing price of the stock of $19 on December 03. The lowest price set for the stock is $16.69 — just above -12.16 percent from VOD share price now.

Past records have indicated that shares in Vodafone Group Plc rose on 4 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings.

The stock is lingering around the initial support level of $18.83. After this, the following support is at the zone of $18.67. Up until the time the VOD stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 34.45 on the daily chart, and this may be a cause for comfort. In case the price goes below $18.67 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $19.09 level may cause a pull-back move approaching $19.19 mark.

The industry VOD deals with has an average P/E of 24.8. Its P/B ratio is standing at 0.8X compared to the 1.6 industry average. It is additionally sporting a 1.1 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1.3. Vodafone Group Plc has a 31.5% gross profit margin.