MoPh Markets

TUI, Asos, Sainsbury — Three Stocks to Watch This Week

As the stock market continues to evolve (wobbling recently), we are constantly looking for promising opportunities. This week, we are watching for potential long-term opportunities in TUI (LON: TUI) and Asos (LON: ASC) while we worry that Sainsbury (LON: SBRY) shares may see some near-term pressure. Here’s why:

TUI

  • The travel company will report its Q3 results on Wednesday, August 9. 
  • TUI shares have been tumbling since 2018, now trading above the 600p mark as investors worry about the company’s debt levels.
  • However, with TUI aiming to tackle its debt — it launched a rights issue to raise €1.8bn in March — and the stock at lows, some investors may look at it as a good opportunity. 
  • We are not there yet, but we have noticed demand trends are increasing, which has made us sit up and take note. As a result, we will be watching TUI’s shares and earnings release closely this week. 

Asos 

Asos Web Traffic – Source: Semrush
  • The online fashion retailer’s shares have also been struggling, down significantly since their 2021 highs, around levels last seen since 2010.
  • However, due to potential upcoming tailwinds, we recently added it to our best clothing stocks list. 
  • It is no longer one of the most shorted London-listed stocks. In fact, shorts interest has tumbled since the beginning of the year. 
  • Furthermore, while not enough to confirm a significant shift in demand just yet, Semrush data shows web traffic has recently risen while consumer sentiment has shifted positively.
  • With the stock at such lows, Asos may be one to look at for bargain hunters.  

Sainsbury 

SBRY Short Interest – Source: ShortTracker
  • On the opposite end of the spectrum, supermarket chain Sainsbury’s is up 24% this year, but two firms have recently upped their short positions in the stock. 
  • Overall, we are relatively bullish about the prospects for SBRY shares; however, BlackRock Investment Management UK upped its short position in the stock at the start of August. 
  • Meanwhile, GLG Partners has been increasing its short position in SBRY since June.
  • Despite our positive view of the stock and company, it’s one to watch as it may come under pressure in the near term.

By Sam Boughedda