As expected, IAG posted strong results last week, although the reaction to IHG’s release wasn’t so positive, with the stock falling despite the positive numbers after the hotel operator said its CEO will step down at the end of June…
This week, Asos (LON: ASC) and TUI (LON: TUI) are set to update the market, while Ocado (LON: OCDO) also makes the list, given its fall last Thursday.
Here’s why they are our stocks to watch:
Ocado is an interesting one for us…
We have previously been very bearish on the stock, but some of the demand data we track (Twitter mentions and web traffic), began levelling out. In addition, funds began trimming their short positions in the stock, leaving us slightly cautious.
However, while Twitter mentions have remained stable, web visits (according to Semrush) are falling once again, while there has been a recent increase in shorts, meaning we lean just so slightly negative once again (from Neutral).
Online fashion retailer Asos is set to post its results for the six months ended February 28 on Wednesday, May 10.
Although consumer sentiment has improved from the end of 2022 and the beginning of this year, demand trends indicate that the release may not have a positive outcome.
Web visits continue to slide, while consumer spending may still be challenged due to sticky inflation, and the customers that are spending money seem to be looking more towards Shein than Asos.
Wednesday’s release will be one to watch.
Will TUI be the latest European airline and travel-related stock to benefit from strong demand? We think so…
While web traffic to its .com domain has remained robust, visits to its .co.uk site hit a high in March and, despite the recent dip, look strong.
Given the recent updates from other airlines, such as IAG and EasyJet, the expectations for TUI are high.
By Sam Boughedda