Last week was a terrible one…
The pound plunged, as did stock markets, and investor fears are continuing to climb.
Take a look across Twitter, and you will see countless mentions of doom and gloom, with many comparing the current scenario to 2008. We’ll be honest and say we are unsure how bad it could get, but we don’t expect much good to come out of next week based on a lack of positive drivers.
Even so, we have our eyes on Boohoo (LON: BOO), Next (LON: NXT) and Wizz Air (WIZZ)
- Boohoo is set to post its interim results on Wednesday, September 28.
- Boohoo was also one of our stocks to watch last week, with demand metrics declining and its share price tumbling (currently down 68% in 2022).
- It is still the most shorted London-listed stock, and despite the significant share price fall, we are not positive about the near to medium-term outlook.
- Another fashion retailer we have a bearish view on, Next PLC, is set to post its half-year results on Thursday, September 29.
- In its trading update on August 4, Next revealed that online sales had declined while retail stores were recovering.
- However, due to the current macroeconomic environment, we believe demand will have decelerated.
- For example, earlier this month, online fashion firm Asos said weaker sales were due to accelerating inflationary pressures on consumers and a slow start to Autumn/Winter shopping.
Wizz Air (WIZZ)
- As we have pointed out many times this year, we like airlines long-term, and we are watching Wizz Air, among others, this week.
- Unfortunately, the overall market doesn’t share our sentiment, but demand continues to climb, with web traffic hitting all-time highs in August (according to Semrush data).
- Unfortunately for shareholders, the stock continued its descent last week, down 58% in 2022.
- While we are sitting on the fence for now, given the current overall market conditions, we will be keeping an eye on Wizz Air.