MoPh Markets

Whitbread, Next Card Factory — 3 Stocks to Watch This Week

Staying ahead of the curve is essential in the current up-and-down market environment. This week, our eyes are firmly fixed on three companies that could continue to outperform: Next plc (LON: NXT), Whitbread (LON: WTB), and Card Factory (LON: CARD). 

With a mix of market-moving developments and earnings reports on the horizon, these stocks should catch investors’ attention.

Next 

Next Full-Price Sales Performance – Source: Next PLC
  • Despite the economic headwinds, Next shares have had a positive year so far, up 24%, and following its interim results, the gains could continue.
  • Total sales, full-price sales and pre-tax profit all rose year-on-year. 
  • The retailer also raised its full-year profit guidance.
  • Next is looking to bolster the middle and top end of its pricing structure, investing more in those price points, while it also noted that inflationary pressures should continue to ease in 2024/25.
  • One area of concern for the company is Joules, which has been “disappointing” in its first year.

Whitbread

Whitbread Daily Chart – Source: TradingView
  • Premier Inn owner Whitbread has also performed well in 2023, up 38%.
  • The company has benefitted from its lower price point as inflation has remained sticky. 
  • At the end of August, Jefferies analysts said WTB’s FY24 interim results, which are expected October 18, should confirm strong UK trading and a market recovery in Germany.
  • As a result, the firm stated it sees re-rating potential for the stock, which is up around 155p since then.

Card Factory

  • Card Factory will report its interim results for the six months ended July 31 on Tuesday. 
  • Ahead of the results, investors may be positive, with the company stating in an August trading statement that “trading in the first six months was materially ahead of the Board’s expectations.”
  • While the macro backdrop continues to be uncertain, the company said its strength in the first half, along with its H2 outlook, means it now “expects the full-year outturn to be materially ahead of its’ previous expectations.”

By Sam Boughedda