MoPh Markets

WH Smith, M&S, Watches of Switzerland — Three Stocks to Watch This Week

The stock market showed signs of a recovery last week following recent uncertainty and weaker economic data causing a less than stable market previously. As investors continue to digest new economic data and speculate on rate decisions, a number of opportunities may be on the horizon.

This week, we have highlighted WH Smith (SMWH), Marks & Spencer (MKS) and Watches of Switzerland (WOSG) as potential long-term opportunities. Here’s why:

WH Smith

  • WH Smith reports its financial year end results on 31st August.
  • The retailer’s share price has fallen almost 4% this year, but an improving travel industry, something that is so vital for the firm, may offer a potential buying opportunity.
  • Its travel division continues to exceed forecasts. However, the cost-of-living crisis may have offput several consumers from travelling this year, suggesting this division still has plenty of room to grow in the coming year.
  • Its important to note the issues faced in its high street division as its aims to reduce costs to support profitability.

Marks & Spencer

M&S site traffic – Source: Semrush
  • M&S impressive share price gains this year (up over 74%) has seen the retailer regain its FTSE 100 position in September following a four year absence.
  • The group has seen great success in 2023, with sales for both food and clothing & home increasing as its new ranfes have improved customer perception.
  • The retailer recently reported 11% growth in LFL food sales and over 6% growth in LFL clothing & home sales.
  • In addition, its online proposition has shown consistent growth since the pandemic as consumers continue to resonate with the firm.
  • A slowdown in inflation, as well as further investment in existing and new stores offers great long-term potential for M&S.

Watches of Switzerland

  • It is difficult not to mention WOSG after the 20% fall in share price to end the week.
  • The plummet occurred following the news that Rolex had bought luxury watch retailer Bucherer AG.
  • This raised concerns regarding WOSG’s prospects, however WOSG claimed it is “not a strategic move into retail by Rolex.”
  • The move will no doubt threaten WOSG’s position in the market, with both Peel Hunt and HSBC downgrading the firm to Hold from Buy.
  • Its share price will likely continue to be affected as Rolex’s move creates uncertainty for the group.

By Jamel Boughedda

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