Headquartered in Montabaur, Germany, United Internet is a leading Internet and related services provider with over 30 million customer contracts. The stock is down by more than 50% from its early-2018 all-time high and trading back to 2013 levels. On one hand, it can be bought for just 10 times free cash flow, which looks cheap for a well-established company in such a stable and predictable industry. On the other hand, revenue growth is in the low-single digits. So fundamentally speaking, it is not easy to decide whether to join the bulls or the bears when it comes to United Internet. The Elliott Wave chart below, however, seems to be tilting the odds firmly in favor of the former.
Similar Elliott Wave setups occur in the Forex, crypto and commodity markets, as well. Our Elliott Wave Video Course can teach you how to uncover them yourself!
It reveals a five-wave impulse to the upside between 2002 and 2018, marked I-II-III-IV-V, followed by a simple A-B-C zigzag down to €12.38 in 2023. Wave I was a leading diagonal, while wave B is best seen as an expanding flat correction. Currently hovering around €27 per share, the stock has more than doubled from that low three years ago. And if this count is correct, the bulls would be happy to hear that it is likely to keep rising towards a new record high in the years ahead. From current levels, that’ll be another double and then some.
In our Elliott Wave PRO subscriptions we provide analyses of Bitcoin, Gold, Crude Oil, EURUSD, USDCAD, USDJPY and the S&P 500 twice a week! Check them out now!
