TotalEnergies is attractive, but trend investors should wait to buy below $50

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on Jun 1, 2022
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  • TotalEnergies is rated highly for value and growth investing.
  • Though the stock is cheap at $57, the price faces resistance at $60.
  • Buying is recommended only for long-term investment.

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TotalEnergies (EPA:TTE) is trading at $57.76. This is almost at the same level as the 52-week high of $60. The 52-week low is $40. This analysis confirms that TotalEnergies faces resistance at $60 and is unlikely to break out.

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Some analysts have rated TotalEnergies a strong buy. This is because the stock is rated well for value and growth investing. The stock is also showing relatively strong momentum. Investors, therefore, could pick the stock based on any of the major styles. Other than the style ratings, the shares are fairly cheap, given the PE of 4.98. The PEG ratio is 0.75 showing that the stock is not yet fully valued. The dividend yield of 3.65% is also considered attractive. 

There are a few factors that help point to the direction of the firm in the long term. Oil prices will remain elevated for the foreseeable future. In Europe, the company will need to reduce reliance on Russian supplies. On the sustainability frontier, Total Energy just agreed to buy Clearway Energy Group to boost its image. We think all this information is already priced.

Total Energy has a reliable trend but faces resistance at $60

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Source – TradingView

Technical analysis shows that TotalEnergies is on a relatively reliable trend. If the stock maintains the trend, it is likely to move up to $64 before pulling back. However, the stock appears to face resistance at $60. It is having challenges breaking through the resistance. Consequently, a price pullback can be expected. TotalEnergies has support at $49.

Summary

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Trend investors could benefit from the price movements of TotalEnergies. Buying is recommended at prices below $50 for trend investors. Long-term investors can purchase and hold the stock at the current levels.

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