Ocado (LON: OCDO) and EasyJet (LON: EZJ) are set to provide trading updates, making them easy choices for this week’s list. Asos (LON: ASC) also makes the list due to its lack of upside momentum. Here’s what we are watching:
Ocado will post its half-year results on Tuesday, July 18…
The stock has been on a run after a report said it could be a takeover target of e-commerce giant Amazon, although since then, there has been no further speculation.
Google Trends shows search interest remains subdued while web traffic continues to decline, according to Semrush, making it difficult to provide a positive outlook.
However, revenue and active customers did surprise us by rising in Q1, while consumer sentiment has been positive for the last few months. As a result, we can’t rule out Ocado surprising us once again.
EasyJet will post its third-quarter trading update on Thursday, July 20…
EZJ shares have been ranging since late January, despite the expectations that airlines will continue their drawn-out recovery this year.
Google Trends shows search interest has risen in the last few months, but it is flat YoY, while web traffic has steadily declined since August 2022, and consumer sentiment is firmly negative.
The signs for EasyJet aren’t so positive, although general travel demand remains robust, and we wouldn’t be surprised to see the low-cost carrier report a solid quarter.
Online fashion retailer Asos is down in the dumps, having seen its shares decline by more than 33% this year, and over 60% in the last 12 months, now trading well below 400p per share…349.7p, to be exact.
On June 15, the company reported that revenue for the three months ended May 31, 2023, fell by 11%. The retailer highlighting a “return to profitability” helped to boost the stock on the day, but it has since given up those gains.
With Google search interest declining (down 18% YoY) and web traffic on the slide, it is easy to have a negative view of the company’s near-term outlook.
Nevertheless, there are some positives… consumer sentiment is very positive, and institutional investors are no longer heavily short the stock, which is at its lowest level since around 2009 (yes, that’s what TradingView shows, 2009). Given Asos has been beaten down enough, we have a neutral view but are watching for signs of a potential rise this week.
By Sam Boughedda