Capgemini stock declines 2% but retains nearly 40% gain over three months

A pullback that does not call into question the advance gained over moving averages

The stock loses 2.25% to €123.95, trailing a CAC 40 that gives up 0.82%. This decline ranks it among the index's steepest losses, where it occupies the bottom of the table. It falls nonetheless following a sharp rebound: the stock remains up nearly 40% over three months, and today's session barely brings the price back below the €126.80 resistance level that the stock had touched the previous day.

The gap to moving averages remains wide: the price is above the 20-day MA (+7.38%) as well as the 200-day MA (+16.87%), which shows that today's movement is merely an adjustment following rapid gains. The RSI at 66 remained below the overbought threshold.

A share buyback program underway and revenue expected on October 30

Capgemini launched a €600 million buyback program on October 6, executed at approximately 21% as of October 20, or €123 million already repurchased. Over twelve months, the group repurchased €698 million in shares, equivalent to 3.3% of its market capitalization. From a valuation standpoint, the analyst consensus tracked anticipates earnings per share growth of 6.8% for the following fiscal year, placing the forward P/E at 9.6 times current fiscal year earnings. The next milestone is the publication of third-quarter revenue, scheduled for October 30.