Capgemini share bounces back 2% against the grain of a declining CAC 40
Capgemini is resisting the prevailing gloom and stands among the rare securities to post significant gains this Thursday in a slightly declining CAC 40. The stock's rebound contrasts with the dominant bearish movement on the Paris exchange, driven notably by the decline in luxury stocks.
A 2% rebound that places the stock back in the CAC 40 upper tier
Capgemini gains 2.09% to €107.30 in trading, while the CAC 40 loses 0.34%. This rebound occurs in a market environment under pressure, with rising sovereign yields (the 10-year British gilt approached 5.27%, a record since 2008, and the 10-year US rate is nearing 4.8%), and military escalation in the Middle East pushing Brent above $95 per barrel. In this environment, Capgemini's outperformance remains notable. Over one month, the stock has recovered nearly 4.7%, and over three months, it shows a gain of 6.45%.
The annual performance remains negative, however, at -9.15%. Over the week, the movement is nearly flat (+0.75%), which underscores that the bulk of the monthly rebound was built progressively. On the analyst consensus front, no consensus revision is available at this stage in today's data.
Short positions in sharp decline and valuation regaining appeal
The technical configuration remains mixed. The stock is below its 20-day moving average (€108.28), with a gap of -0.91%, and also remains below the 200-day MA at €111.59 (gap of -3.84%). Conversely, it holds clearly above its 50-day MA at €99.75, with a gap of +7.57%, which reflects still-positive medium-term momentum. The RSI at 49 remains neutral, with no overbought or oversold signals. The resistance to watch is at €111.40, a level the stock has not yet recovered since its annual decline.
Moreover, net short positions declared on the capital have contracted significantly: three funds now account for 1.78% of the capital sold short, compared to 3.05% thirty days ago, a contraction of 1.27 percentage points. This decline indicates that participants initially positioned bearishly have reduced their exposure, although no precise intention can be inferred. Finally, based on the analyst consensus surveyed, the stock trades at approximately 8.5 times current fiscal year earnings and 7.8 times the following fiscal year's earnings, with EPS growth expected at +8.2% from one fiscal year to the next. The €111.40 resistance constitutes the next threshold to overcome for the monthly trend to continue.
