Schneider Electric Shares Drop 2.9% to €263.10, Testing a Key Support
Schneider Electric's stock is among the biggest losers in the CAC 40 at midday this Friday, at €263.10, down 2.9% as the Paris index falls 1.36%. The session pushes the stock below its 20-day moving average and nears the lower Bollinger band. However, the electrical equipment group is still up 19.5% year-over-year.
Stock Falls Below its 20-Day Moving Average and Nears Bottom of Bollinger Bands
Schneider Electric's stock is trading below its 20-day moving average (€272.24), with a gap of 3.36%. The price is approaching the lower Bollinger band at €262.49, now only about 0.2% away. This setup extends the decline that began after the record high of €287.90 reached on May 7, the day annual results were announced. Mid-term supports hold firm. The 50-day moving average at €257.69 and the 200-day at €241.82 are still below the current price, with respective margins of 2.1% and 8.8%. The RSI at 53 remains neutral, showing no oversold signal. The support threshold of €229.10 remains distant, unlike the resistance at €282.70, which corresponds to the high reached on May 6. Schneider Electric is among the biggest losers in the CAC 40 this Friday, alongside STMicroelectronics and ArcelorMittal, which are facing steeper declines.
Stretched Valuation and Deteriorating Building Environment as a Backdrop
Based on the consensus of 18 analysts, the stock is trading at about 26.6 times the expected earnings for the current fiscal year, compared to an average of 17.9 times in the Industrials sector. The multiple is 22.9 times for the following year, with an expected EPS growth of 16.3%. Today's decline occurs in a context of a deteriorating building sector in Europe, with a construction climate of -18 in France and -3.7 in the EU in April 2026, and a year-on-year decline of 3.5% in French production. Nevertheless, the group had reported a record revenue of €9.8 billion in the first quarter of 2026, with organic growth of 11.2% driven by data centers and North America. Negative currency effects (-6.7% of revenue) were highlighted during this announcement on May 4. The next financial calendar event is the publication of the semi-annual results for 2026, expected on July 30.
