Financial Trading Blog
Stock of the day 14/06/2016 – JD Sports Fashion PLC
Can that continue following the company’s AGM and trading update on Friday?
Bar one or two blips JD Sport just hasn’t stopped climbing since 2016 began. January’s initially choppy waters were overcome with a stellar post-Christmas update, the company revealing a 10.6% surge in like-for-like UK and European sales (compared to the profit warning from Sports Direct). This sent the stock to an all-time high of £11.65 by the start of February, though JD Sports admittedly couldn’t enjoy that peak for long as the miserable trading of that month caused the retailer to fall all the way back to £10.24.
(Source: IT-Finance.com 14/06/2016)
By the beginning of March JD Sport, like much of the wider market, had recovered from that February shock, spending the 6 weeks to the middle of April ping-ponging between £11 and £11.50. The company received its next major-boost in on April 13th with the release of its full year figures: revenue rose by a whopping 20% to £1.8 billion, with operating profit surging 50% to £158.9 million and pre-tax profit jumping a similarly strong 45% to £131.6 million.
That trifecta of headline figures spurred the stock on, sending it above the £12 mark for the first time in its history. Its rise didn’t end there, and by June 8th it had hit its latest all-time high, closing at £13.16. JD Sports Fashion PLC sits at a current trading price of £12.44 (IT-Finance.com, 14/06/2016).
In terms of its AGM/update on Friday investors will be looking for confirmation that the company’s robust trading pattern has continued into its new fiscal year. If anything investors will be looking for an accelerated performance, with Euro 2016 providing an opportunity for increased activity in the company.
JD Sports Fashion PLC has a consensus rating of ‘Buy’ with an average target price of £11.44.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to machibet77.com.
