This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
An exciting UK Index earnings season will peak next week, a long list of household names updating on recent quarterly performance. While revenues and profits are of course important, the Brexit situation means outlook is more key than ever. Prepare for some big share price moves by the likes of Barclays, Lloyds, BP, Shell, BT, ITV, Taylor Wimpey, Tullow Oil …. I could go on but I’d be here all afternoon. The list is rather long so I suggest you sample are highly useful Week In Advance publication that outlines the wealth of UK, European and even US companies set to report next week.
Earnings season offers a myriad of opportunities for both short and long-term investors looking to profit from event-driven moves in share prices. With outlook so important this time round, we reiterate the importance of being able to decipher the devil in the detail of often lengthy reports. Headline numbers aren’t always compared to consensus on the newswires.
The outlook is often buried if less than inspiring and, given that share price moves are based more on future expectations than past performance, it is the outlook that you need to know about. All the while the situation remains unclear regarding the UK’s divorce from the European Union, many shares (Banks, housebuilders, airlines) still trading up to 30% lower.
That’s why you need to be speaking to me – a market professional, watching the news-flow all day long, keeping tabs on what’s moving the share prices of the stocks you like, to make your life easier. It’s not always simple on your own. You know that growth is good and losses are bad, but slowing growth is a concern and it’s worse when it misses expectations. Ever been confused by a share price falling when a company reported higher profits? It must have disappointed somewhere and less growth means a lower starting point for future growth, meaning the company and its shares are seen as worth less. Profits may have grown 10% for the last year, but if the company sees no future growth then why should the share price rise?
So as we approach what I hope will be a sunny but cooler weekend, I want to make sure that you are aware of both the trading opportunities available next week and the assistance at hand should you need it. It comes at no extra charge from Accendo Markets with a friendly dedicated broker at the end of the phone who knows what you are looking for (because you’ve told us), bringing you the latest news the moment it breaks. That’s before I even talk about our renowned research product that you can access here to get a feel of the information and trade observations we offer clients daily. Give it a go – you have nothing to lose and plenty to gain. If it’s results season that takes the UK Index back towards all-time highs, you wouldn’t want to miss out would you?
Suni Dhanjal, Senior Trader, 22 July
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research
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