Supermarket powerhouse Tesco (LON: TSCO), watch retailer Watches of Switzerland (LON: WOSG), and online real estate business Rightmove (LON: RMV) are three of the key stocks we are watching this week. Here’s Why:
Tesco has faced some headwinds recently, pressuring its stock which is now down over 6% in the past three months. Even so, it has remained somewhat resilient over the past year or more despite elevated inflation and difficult macro conditions.
Online searches for the supermarket giant are down 36% in the past year, while its web visits are also on the slide, and it ranked behind Aldi, Lidl, and Asda when it comes to the cheapest supermarket in June, according to Which. Despite the negatives, Tesco is still one to consider, especially for its long-term outlook and solid dividend policy.
Watches of Switzerland
Watches of Switzerland is set to report its FY23 results on Thursday, July 13. Despite luxury brands holding up well during soaring inflation, Watches of Switzerland shares are down over 23% in the last 12 months, not helped by the company forecasting a “modest” sales decline in the first quarter.
Even though it is down from all-time highs, traffic to the WOSG website has remained resilient, still well above pre-pandemic levels, while Google searches are stable ahead of the company’s earnings release.
Online housing website Rightmove is down almost 4% in the last three months as concerns about the UK housing market continue to weigh on the stock.
However, for Rightmove, the general housing market isn’t too much of a problem given their business model (explained in a little in this article here).
Even so, as mentioned in previous articles, if demand continues to slip and visits to the Rightmove website decline — as they have since February — we could start to see an impact on its business performance.
By Sam Boughedda