MoPh Markets

Boohoo, Marks & Spencer, Wizz Air – 3 Stocks to Watch This Week

Boohoo (LON: BOO) shareholders have had a tough time in the last couple of years, but has the stock now found a bottom? Analysts seem to believe so, but we aren’t so sure yet.

Meanwhile, Marks & Spencer (LON: MKS) will report its preliminary results this week, and Wizz Air (LON: WIZZ) demand data shows some signs of easing. Here’s why they are our 3 stocks to watch this week…

Boohoo

MoPh Markets Consumer Sentiment Tracker

Boohoo makes the list again this week…

Its shares are down significantly from their over 400p per share highs back in 2020, currently down around 43p.  However, Panmure Gordon and HSBC analysts upgraded the stock last week following its latest earnings release. 

Boohoo reported heavy losses, but its positive balance sheet and upbeat outlook provided some positives for investors. 

While the stock is down significantly, given consumer sentiment is still negative and demand data such as web visits and Google searches are still trending lower, we remain neutral but wouldn’t be surprised to see some upside this week.

Marks & Spencer

UK Search Interest in Marks & Spencer – Source: Google Trends

Marks & Spencer will post its 2022/23 preliminary results on Wednesday, May 24.

There are two schools of thought ahead of the release. One is that MKS consumers are generally wealthier and less impacted by inflation, meaning they could post solid results.

The other is that given rising rates and sticky inflation, consumer trade-down will impact the company’s sales.

Given the slide in Google searches and a slight decline in web visits, we just about lean towards the latter, although with inflation headwinds expected to ease, the company’s guidance may be a positive to watch for.

Wizz Air

MoPh Markets Twitter Mentions Tracker

Wizz Air shares fell over 5% Friday, which caught our attention. Despite that, it is up 57% this year.

Other airlines fell on Friday too, but Wizz is one we have had our eye on for a couple of weeks, with Twitter mentions on the slide…

While web traffic and Google searches are still elevated, we are keeping our eye on demand trends. While we expect Friday’s fall to be a minor blip, we will keep our eye on Twitter mentions in the coming weeks to see if there is a sustained slide, potentially representing a sign of waning demand. 

By Sam Boughedda