JD Sports, Cineworld, Boohoo – 3 Stocks to Watch This Week

As is the way of late, despite the positive start last week, stocks ended up being a bit crap following US inflation data on Tuesday.

In addition, while the headline number showed UK inflation eased to 9.9%, it was primarily driven by fuel prices, with food and clothing actually rising. As a result, consumer discretionary spending will likely be stretched further. Here’s why we are watching JD Sports, Cineworld and Boohoo this week:

JD Sports (JD)

Source: Semrush
  • JD Sports will report its Interim Results on Thursday, September 22.
  • As mentioned, with inflation data showing the cost of apparel and footwear increasing, consumer demand for JD Sports is waning, and its website traffic is now at its lowest since 2017.
  • While the company has a strong balance sheet, the current economic climate means we are wary ahead of its interim release, leaning slightly bearish. 

Cineworld (CINE)

Source: Cinemauk.org
  • Cineworld is also said to report Interim Results on Thursday, September 22.
  • The struggling cinema chain recently filed for Chapter 11 bankruptcy in the US.
  • Its significant debt pile and slow recovery following the pandemic have significantly hit the company. 
  • While cinema demand is recovering, it is still below pre-pandemic levels.

Boohoo (BOO)

Source: Semrush
  • According to Short Tracker, Boohoo is the most shorted London stock.
  • However, Citadel slightly upped its Boohoo stake last week.
  • Even so, our Twitter data tracking shows mentions of Boohoo are down around 16% from the last quarter, while website traffic is around pre-pandemic levels after falling from its pandemic highs.
  • With demand still waning and shares down 83% in the last 12 months, the question now is, how long will the share price decline continue?

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