close icon

Winds Might Change for Vestas Wind Systems

Vestas Wind Systems is the world’s largest wind turbine manufacturer. The company has installed almost 60 000 wind turbines in 76 countries around the globe. Last year’s record breaking revenue of 10.2 billion euro helped the stock gain enough inertia to give Vestas Wind Systems a market cap of $19.2 billion as of this writing.

It feels as if all the winds are blowing in Vestas’ direction. However, complacency is among the most dangerous things in the market, since stock crashes usually come out of nowhere. Vestas is likely going to deliver a strong result for 2017 as well, but who knows how the market would interpret it. So instead of blindly following the common knowledge that higher profits lead to higher stock prices, let’s take a look at Vestas Wind Systems’ weekly price chart and see what the Elliott Wave Principle has to say.
vestas wind systems stock analysis
The weekly chart shows the stock’s progress since 2012. As visible, the uptrend has already formed a clear five-wave impulse between $4 and $96.40 per share. The bulls’ march in waves 1, 3 and 5 was interrupted by corrections in waves 2 and 4. The point is that according to the theory, a three-wave decline follows every impulsive rally. This mean that before Vestas’ shareholders see another increase in their fortunes, they would probably have to deal with a significant pullback in wave (2/B), which could be expected to drag the stock price back to the support area of wave 4 of (1/A) near $55 a share.

It is true that clean energy is the future and Vestas Wind Systems’ management is doing an excellent job unlocking the company’s great potential. We believe Vestas would make a great long-term investment. Not at $95 per share, though. Better buying opportunities would start emerging once the price approaches $60.



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

MongoDB – Bearish Pattern Joins Nosebleed Valuation

MongoDB Inc. is a general purpose database platform developer and provider. The company was founded in 2007, but only came public ten years later – in 2017. During the following four years, the stock has risen from an IPO price of $33 to $515 a share as of last week. So, it is fair to…

Read More »

Pandora Does Things Right. Stock May Need a Breather

When we wrote our previous article on Danish jewelry maker Pandora in December, 2020, the stock was up over three-fold since March. That recovery from DKK 180 to DKK 651 didn’t not come out of the blue, though. It was the result of a bullish setup we managed to identify as early as July 2019.…

Read More »

Match ‘s SP500 Inclusion a Good Excuse to Reach $200

Match Group Inc. rose over 10% in post-market trading Friday following reports that it is going to be included in the S&P 500. The company, which owns Tinder, OkCupid and most other major dating apps in the U.S., has a market cap of over $41B. Despite the anticipated “summer of love”, though, this is not…

Read More »

Cameco Stock Seems to Have Finally Turned a Corner

Uranium spot prices are on the verge of breaking above $34/lb, up over 80% from the bottom of $18/lb reached in late-2016. Cameco, as one of the world’s top uranium producers, is now seeing its stock price rising in tandem. Yesterday, it closed at $19.16 after reaching $21.95 in June. We first covered Cameco in…

Read More »

A Fresh Look At Cigna ‘s Elliott Wave Super Cycle

In a case study article on Cigna, published in October, 2016, we examined how a fundamentally sound and undervalued stock can still drop nearly 90%. The reason for that crash didn’t lie in some company specific issue. Rather it happened to occur during the biggest financial crisis in 80 years. Nevertheless, we made the point…

Read More »

CBOE Takeover Rumor Lifts Stock to Elliott Wave Target

We first wrote about CBOE Global Markets less than eight months ago. The S&P 500 had already recouped all its COVID selloff losses and was hovering at new all-time highs. CBOE, in contrast, was still down 30% from its 2018 record, trading below $97 a share. For some reason, the market was ignoring the company’s…

Read More »

Ahead of Ulta Beauty ‘s 150% Gain Since Lockdown

Buying shares in a beauty retailer in March 2020 sounded like a crazy, stupid idea. Stock markets around the world were plunging at a record pace amid a global GDP crash resulting from government-enforced lockdowns. People were stockpiling necessities in preparations not to leave their homes in the foreseeable future. With COVID-19 cases rising everywhere,…

Read More »

More analyses