Buy Signal on EDF (EDF-FR)

We had an Enter Long Strategic signal on October 26, 2021, triggered by our system on EDF, EDF-FR, the French Energy company.

Our system also triggered an Enter Long Tactical signal on September 28, 2021 that imply a likely bullish acceleration. EDF has a rather weak track record, with a Behavioral score of 1/10, therefore the bullish signal is to be considered as Tactical.

EDF is a €40.5 Bn market company and the French leader in the production and distribution of electricity. Revenue consists on 1/ production and sale of electricity and natural gas (66%). The group is also developing an activity of trading in electricity, natural gas, coal and oil; 2/ management of low and medium voltage electricity distribution networks (23%): construction and operation of networks. In addition, the group is developing a high and very high voltage (RTE) management activity; 3/ energy services (11%): engineering & construction of cogeneration and renewable energy production units, operation of electrical networks, management of public lighting and district heating equipment, etc...

Nuclear seems to be back in the France Energy’s transitions plans after years of controversy and political headwinds. The rising energy prices is a wake up call for politicians, especially in Europe now more than ever dependant of russian gas, that the transition to clean energy will take time. Nuclear is a perfect tool for France to manage the transition. A new fond has been set up by the government to finance and help the small companies withing the french nuclear industry. Beyond France, the nuclear industry is now expected to recover in the coming years as it seems to be a potential credible short term answer to the Energy transition.

The stock currently offers a 4.2% dividend yield.

Short term catalyst : rising energy prices, return of nuclear power in the energy transition.

This signal looks consistent with the European Utilities services sector in Major Bullish trend, while there is 64% of Utilities companies in Tactical signal but still only 39% in Strategic signal.