MoPh Markets

Sainsbury, Jet2, Revolution Beauty — 3 Stocks to Watch This Week

Have shares of supermarket giant Sainsbury’s run out of steam? Low-cost airline Jet2 should continue to perform well, and what’s happening with Revolution Beauty? Here’s why we have our eyes on these stocks this week:

Sainsbury

UK Supermarket average Price Basket May – Source: Which?

Sainsbury will post its first quarter trading statement on Tuesday, July 4.

After a strong rise from October 2022 to May this year, Sainsbury’s shares have pulled back from their 291p high, running out of steam. 

Even so, we are positive about the stock long-term. According to Which, Sainsbury’s was one of the cheaper supermarkets in March, April, and May, while it has also been cutting costs of some items in recent weeks, which should help sales. Whether that will translate to a positive update is another question. While web traffic rose since a dip in March, showing signs of stabilisation, Google searches have dipped.

Jet2

We wrote a piece on Jet2 not too long ago, showing demand trends were on the up for the low-cost carrier. However, while Jet2 is capitalizing well on the current travel trend, driven by its competitive pricing in a high inflationary environment, its stock has been moving somewhat sideways since March. We remain positive, with both Google searches, Twitter mentions, and web traffic trending positively.

Jet2 should be an attractive option for budget-minded travelers in an environment where consumer wallets are stretched.

Revolution Beauty

Revolution Beauty Daily Chart – Source: TradingView

A suspension of trading of Revolution Beauty shares was lifted on Wednesday after being suspended in September last year due to concerns from auditors about its financial accounts. The make-up firm also failed to publish its 2022 annual results.

The stock has jumped since then, climbing to over 31p per share. REVB released said ahead of the reinstatement of its shares that trading was excellent during the first three months of its financial year, with sales up 60% YoY. 

In addition, it is also in a spat with Boohoo regarding its board, with what seems like daily jibes between the pair. While we currently have no view on the stock, the positive trading update and drama with Boohoo have caught our attention and maybe something we delve deeper into over the next month. It’s one to watch this week.

By Sam Boughedda