Creightons Plc, together with its subsidiaries, develops, manufactures, and markets toiletries and fragrances in the United Kingdom and internationally. It offers haircare, skincare, bath and body, wellbeing, and male grooming products. The company also offers private label products for high street retailers and supermarket chains; and engages in contract manufacturing business on behalf of third-party brand owners.
The chart of CRL.L is shown above with the price data in candlestick format over the past six months of trading. The green line study above the price shows the VectorVest valuation of the company which is significantly higher than the current share price.
In the window below, the price the blue study shows that forecast Earnings per share (EPS) is rising and this is the engine that’s been driving the share price upwards. Over the past five years EPS has risen from 2p to 8p.
On VectorVest, the relative safety (known as RS) is ranked as excellent. The metric measuring long-term share price appreciation potential in relation to a AAA rated corporate bond (known as RV) is showing an excellent value. CRL.L has a forecast Earnings Growth Rate (GRT) of 21% which VectorVest considers to be excellent.
Technically, CRL.L has been trending higher over the past five years. From the 19th of July 2021 to the 9th of August 2021 CRL.L moved strongly upwards and posted a 50% move in this short period. This move occurs on the strong volume easily seen on the chart above. A share moving upwards on rising volume is a healthy scenario and a characteristic of a bull market.
Since the 9th of August, the share has retraced some of the up move but importantly this has occurred on low volume which is another characteristic of a bull market. Chartists reading will note that during the retracement the share has charted a “bull flag” which is regarded as a strongly bullish pattern. The technical target from the “bull flag” pattern and the current VectorVest valuation are similar at approximately 150p
In summary, CRL.L has an excellent combination of both earnings growth and earnings safety. The share is markedly undervalued and technically is on a Buy recommendation on VectorVest with a stoploss upon a close below 93p. The price and volume action over the past few months are also extremely bullish.
Traders should note that the share has a large spread between the buy and sell price. Traders should also take account of the relatively low daily volume turnover in the share and size their positions accordingly.