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3 Earnings Season Winners You Should Know AboutAs the dust settles from a brutal earnings season which has seen stocks heavily punished for missing growth forecasts, we’re going to look at three UK stocks which bucked the trend and beat the market. Associated British Foods (ABF) ABF’s share price surged to new trend highs following the announcement of a surprise special dividend, a £500 million share buyback, and robust trading at its discount fashion chain Primark. ABF reported annual results that exceeded previous guidance, showing a 16% increase in group revenue to £19.8 billion and a 9% rise in adjusted pre-tax profit to £1.47 billion. The company attributed this success to price hikes across its businesses to combat inflation. Primark experienced a 17% rise in annual revenues to £9 billion, with like-for-like sales growth of 8.5%. Despite a 3% decrease in adjusted operating profit to £735 million, the company’s CEO, George Weston, described Primark’s performance as excellent under the circumstances, emphasising the brand’s attractiveness to both existing and new customers. The conglomerate’s sugar business, particularly in Africa with Illovo, showed improved profits. Grocery revenues, driven by international brands like Twinings, Ovaltine, and others, performed well, especially in the US. The UK’s Allied Bakeries also saw improved performance. With strong cash generation and successful strategic initiatives, ABF is well-positioned for further growth and progress in the coming year. ABF Daily Candle Chart Past performance is not a reliable indicator of future results Auto Trader (AUTO) Auto Trader raced to the top of the FTSE’s highest risers this month after posting a strong set of half-year results. The online car dealerships operating profit margin remained stable at 71%, while the overall margin slightly dipped to 59%. Basic earnings per share grew by 4% to 12.74p, and cash generated from operations rose by 12% to £184.2 million. EBITDA increased by 9% to £182.1 million, and adjusted earnings per share climbed 2% to 13.96p. The growth in average revenue per retailer by 12% was attributed to the adoption of additional products and services. Auto Trader expressed confidence in the second half, citing stable recurring revenue and successful execution of a first-half growth event. The integration of Autorama, a new car leasing firm, is underway, promising cost savings and anticipating volume growth. Auto Trader’s CEO, Nathan Coe said: “It has been a strong start to the year with more buyers spending more time and completing more of their car buying journey on Auto Trader.” “We are working in partnership with record numbers of retailers and manufacturers, who are turning to our platform as the most effective and efficient way to source, price and sell their vehicles.” On the price chart, Auto Trader’s results created the catalyst for a significant breakout. Prices are now consolidating in a tight range near recent highs. AUTO Daily Candle Chart Past performance is not a reliable indicator of future results Experian (EXPN) Experian’s share price gapped higher earlier this month following an impressive set of first half results. Revenue from ongoing activities climbed by 6% to $3.41 billion during the six-month period, and profit hit $928 million, propelled by heightened consumer demand for affordability assessments and investment portfolio analysis during the cost-of-living crisis. Experian attributed its positive results to growth across all regions. Latin America experienced double-digit growth, North America demonstrated improvement by focusing on new revenue streams and analysis tools, while EMEA and Asia Pacific showed signs of improvement, and the UK and Ireland sustained steady growth. In North America, the company adapted its strategy to emphasise revenue streams like new datasets and analysis tools, offsetting the impact of stricter lending standards. Meanwhile, British lenders are increasingly seeking comprehensive financial data due to heightened concerns about borrowers managing debts in a high-interest rate environment. The market's response to Experian’s results has been very bullish with the shares breaking above a descending trendline which had been in place since the summer. Prices are now consolidating within a small bull flag pattern. EXPN Daily Candle Chart: Past performance is not a reliable indicator of future results Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts 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..
LSE:EXPN
by Capitalcom
The worst is over for Barclays Bank?One of the Uk's 'big four' banks, Barclays bank is looking to make a comeback after being in a corrective phase(or downtrend) for more than a year and a half. The stock made an impulsive up move from the march 2020 bottom and the same went on till Jan 2022.Since then however the stock entered the 'wave 2' correction and has remained in it for more a year and a half. At the most recent Oct 2023 low however, the corrective wave counts for the stock seem to have come an end and it should be expected to now start a fresh 'wave 3'. The stock held its 61.8% retracement on three different occasions and managed to reverse from it almost immediately every time it visited it. On the way up the stock faces its first hurdle from the falling trendline at 155 and then at previous 'x' wave top at 166.44 respectively. On the downside the low of 128.12 is crucial for the stock. The stock is expected to gain momentum upon closing above the falling trendline. It should also be noted that Barclays is a significant component of the FTSE 100. The 'wave 3' projection is expected to take the stock from current levels to around 250-260 mark. Note*- This chart is for educational purpose only.
LSE:BARCLong
by neeraj_2_sharma
BP's Q3 Profits Dip as Energy Trading FaltersBP (BP.) Financial Snapshot: BP reported a significant drop in third-quarter profits, with underlying earnings totalling $3.3 billion, down from $8.2 billion in the same period a year earlier. These results fell short of market expectations, which had anticipated earnings of $4 billion. Today’s results were BP’s first since the resignation of CEO Bernard Looney in September. Looney's resignation was prompted by his failure to disclose past relationships with colleagues. Interim CEO Murray Auchincloss highlighted the company's strong operational performance, noting that oil and gas production was 3% higher than the previous year, and production costs were 6% lower. However, these positive operational aspects could not fully offset the impact of lower prices for BP's hydrocarbons and lower-than-expected results from its gas trading operations. Despite the sharp decline in earnings, BP continued with its share buyback program, announcing plans to repurchase an additional $1.5 billion of shares. Market Reaction: The market's initial response to BP's results has been negative, with the stock dropping more than 22p. To put this price movement in perspective, BP's Average True Range (ATR) is 13p, which means today's gap down is more than 1.5 times the magnitude of a typical trading day for BP. This morning's negative gap has taken prices back to the 200-day moving average (MA), a closely watched metric for long-term investors. The move lower has also brought prices closer to short-term swing support created by the early-October swing lows. If BP manages to rally during today's session and close this morning's gap, it would be viewed as a very bullish sign. However, if the shares fail to close the gap, it would signal that short-term momentum remains bearish. BP. Daily Candle Chart Past performance is not a reliable indicator of future results Risk Management: The release of financial results tends to amplify a stock's volatility. For those considering trading BP, the ATR serves as a valuable tool to help traders account for a stock's volatility when setting stop losses and limit orders. Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.
LSE:BP.
by Capitalcom
Barclays Gap Lower on Q3 NumbersBarclays (BARC) Financial Snapshot: Barclays announced a 16% decrease in profit for the third quarter. This decline was primarily attributed to sluggish revenue growth in its UK retail division and lackluster performance in its investment bank, impacted by a shortage of M&A deals and reduced trading activity. However, Barclays managed to exceed expectations by achieving a net profit of £1.3 billion. The bank also sustained a 5% increase in overall group revenue, reaching £6.3 billion, aligning with market projections. Notably, Barclays allocated fewer funds for bad loans than the market had predicted. The UK retail division experienced a 3% dip in attributable profit, mainly due to customers shifting deposits away from higher-interest-rate products. Barclays anticipates a decrease in its net interest margin for 2023, now expected to fall within the range of 3.05% to 3.10%, down from the previous guidance of 3.2% to 3.15%. This metric is one to watch, especially with domestic peers like NatWest and Lloyds Banking Group preparing to report their quarterly results soon. In the investment bank, income decreased by 6% to £3.1 billion when adjusted for a bond overissuance error from last year. Fixed-income trading saw a notable 26% decline, while equity trading revenue more than doubled. Advisory and capital markets fees dropped by 30% due to fewer takeover deals and reduced debt issuance. Market Reaction: The market has so far responded negatively to Barclays' Q3 results, causing a share price to gap lower at the opening of today's trading session. Interestingly, this price gap breached two levels of horizontal support that were established by the summer swing lows. This negative gap is likely to create a layer of resistance on Barclays' price chart in the future. Prices now appear poised to retest the lows seen during the Silicon Valley banking crisis spike that occurred in March (see chart below). BARC Daily Candle Chart Past performance is not a reliable indicator of future results. Risk Management: The release of financial results tends to amplify a stock's volatility. For those considering trading Barclays, the Average True Range (ATR) serves as a valuable tool to help traders account for a stock's volatility when setting stop losses and limit orders. Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.
LSE:BARC
by Capitalcom
Aston Martin reverse to retest key support cluster Aston Martin Lagonda Global Holdings (LSE:AML) Aston Martin’s share price had raced higher during the summer after Chinese carmaker, Geely doubled its stake in the historic British brand. Geely, a long-standing admirer of Aston Martin, had previously made multiple attempts to acquire the company. In May, Geely acquired 42 million shares from Aston Martin's ownership consortium, solidifying their investment while providing components and technology to the automaker. However, recent market dynamics have caused Aston Martin's share price to reverse course, experiencing a substantial pullback from its summer peak of nearly £4. This extended retracement has brought the stock into close proximity to a cluster of support levels. Firstly, there's the gap that emerged in May after Geely's investment, which has now been closed. During the recent gap-closure phase, several long-tailed bullish hammer candles have appeared, indicating potential reversal signals. Secondly, the Volume Weighted Average Price (VWAP) anchored to the key October lows assumes significance, as it reflects the average price of buyers who entered just before the Geely rumours surfaced. Lastly, we find swing support, which represents the psychologically important £2 level. This confluence of support levels is likely to attract the attention of long-term investors, and it remains to be seen whether it will be sufficient to reverse the recent pullback. AML Daily Candle Chart Risk management It's essential to remember that support and resistance levels serve as guides and are not foolproof guarantees. While technical analysis is valuable, it should complement fundamental analysis. It's noteworthy that Aston Martin is currently a loss-making company, making it susceptible to short sellers. Additionally, please take into account that Aston Martin is scheduled to release its Q3 2023 Earnings on Wednesday, November 1st. Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.
LSE:AML
by Capitalcom
AML: A Speculative Buy06 October 2023 The Professional Trader The article and the data is for general information use only, not advice! 3 min read Aston Martin: A Speculative Buy Aston Martin is a luxury car manufacturer with a long and storied history. The company is known for its high-performance, handcrafted vehicles. However, Aston Martin has also had a history of financial struggles. Here are some of the reasons why I would rate Aston Martin shares as Speculative Buy: Strong brand: Aston Martin is a well-known and respected brand in the luxury car industry. The company's cars are associated with luxury, performance, and style. Growth opportunities: Aston Martin is well-positioned for growth in the luxury car market. The company is expanding its product range and entering new markets. For example, Aston Martin is planning to launch a new SUV in the coming years. Valuation: Aston Martin shares are currently trading at a relatively low valuation. The company's price-to-earnings ratio is around 6, which is below the average for the luxury car sector. However, there are some risks to consider before investing in Aston Martin shares. These include: Financial performance: Aston Martin has a history of financial losses. The company has been struggling to generate positive cash flow and earnings. Debt: Aston Martin has a significant amount of debt. This could make the company vulnerable to a downturn in the luxury car market. Competition: Aston Martin faces competition from other well-known luxury car brands, such as Ferrari and Porsche. Overall, I believe that Aston Martin shares are a good investment for investors who are willing to take on risk. The company has a strong brand, growth opportunities, and a relatively low valuation. However, investors should be aware of the financial risks associated with investing in Aston Martin shares. Risk Disclaimer! Stock Rating I would rate Aston Martin shares as a Speculative Buy for the mid- to long-term. The company has strong brand and growth opportunities for the near and long term future. Trading with options as an alternative support to investment in Aston Martin sharesTrading with options can be a good alternative support to investment in Aston Martin shares. Options give investors the right, but not the obligation, to buy or sell shares at a certain price on or before a certain date. This can be used to hedge against risk or to speculate on the future price of Aston Martin shares.For example, an investor who believes that Aston Martin shares are undervalued could buy call options. This would give the investor the right to buy shares at a certain price, even if the share price rises above that level. This can be a good way to limit losses if the share price falls.Conversely, an investor who believes that Aston Martin shares are overvalued could buy put options. This would give the investor the right to sell shares at a certain price, even if the share price falls below that level. This can be a good way to profit if the share price falls.It is important to note that options are a risky investment and should only be used by experienced investors. Options can expire worthless, and investors can lose more money than they invest.If you are considering trading with options, it is important to do your research and understand the risks involved. You should also consult with a financial advisor to get personalized advice. My opinion on trading with options as an alternative support to investment in Aston Martin sharesI believe that trading with options can be a good way to support an investment in Aston Martin shares. Options can be used to hedge against risk or to speculate on the future price of the shares.For example, an investor who is bullish on Aston Martin in the long term could buy shares and also buy call options. This would give the investor the opportunity to profit if the share price rises, but it would also limit their losses if the share price falls.Conversely, an investor who is bearish on Aston Martin in the short term could buy put options. This would give the investor the opportunity to profit if the share price falls, but they would lose their investment if the share price rises.It is important to note that options trading is complex and risky. Investors should carefully consider their investment goals and risk tolerance before trading with options. Risk Warning Trading stocks and options is a risky activity and can result in losses. You should only trade if you understand the risks involved and are comfortable with the potential for losses. Risk Disclaimer! General Risk Warning: Trading on the Financial Markets, Stock Exchange and all its asset derivatives is highly speculative and may not be suitable for all investors. Only invest with money you can afford to lose and ensure that you fully understand the risks involved. It is important that you understand how Trading and Investing on the stock exchange works and that you consider whether you can afford the high risk of loss Rating: Speculative Buy Risk Disclaimer! The article and the data is for general information use only, not advice!
LSE:AMLLong
by TheTrade_Academ