MoPh Markets

Aston Martin, B&M, Auto Trader — 3 Stocks to Watch This Week

There’s a heavy automotive feel to our 3 stocks to watch this week. B&M (LON: BME) and Auto Trader (LON: AUTO) are reporting full-year results, while Aston Martin Lagonda’s (LON: AML) run higher has caught our attention, with the stock starting to look attractive. Here’s why:

B&M

B&M Web Traffic – Source: Semrush

Discount retailer B&M will report its FY23 preliminary results on Wednesday, May 31.

Unsurprisingly, the stock is up this year, gaining over 11%, and with inflation continuing to weigh heavy on consumer spending, BME should continue to reap the benefits. 

However, online demand trends, such as web traffic and Google searches, have stabilised over the last few months, which suggests trading remains strong — as mentioned in its Q3 release — but possibly not better than expected.

Overall, we like B&M shares in the near to medium-term.

Auto Trader

Auto Trader Web Traffic – Source: Semrush

Auto Trader will post its full-year results on Thursday, June 1…

The stock has performed positively in 2023, up over 20%, but it still trades below its 2021 highs.

In the second half of its financial year, Google searches for Auto Trader stabilised at slightly lower levels before picking up in January this year.

However, web visits continued to slide. This is more than likely a representation of a decline in consumer spending on big-ticket items.

We have a neutral rating on the stock.

Aston Martin

Aston Martin Lagonda Daily Share Price Chart – Source: TradingView

Aston Martin is an interesting one for us. The stock is up more than 64% in 2023.

The luxury car brand has definitely benefitted from its F1 exposure, but although they are partners, they are not the same entity.

Even so, AML said in early May that it has seen strong demand across its portfolio, with around 95% of its current range of GT/Sports sold out for 2023 ahead of the launches.

Elsewhere, AML shares were boosted by the announcement of a “substantial investment from Geely Holding,” a Chinese independent automotive group, as part of a new relationship agreement.

We will be watching this week to see if AML shares can continue their strong run. 

We are not yet bullish, but the AML story is starting to look interesting.

By Sam Boughedda