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September has only just begun, however already, alongside the acceleration of the expected customary September volume increase, there is a plentiful helping of stocks from one of retail investors’ favourite sector, the Housebuilders.
As has almost become customary, the sector wheels some of its largest names out to report numbers almost as soon as the Autumn begins, ranging from UK 100 and 250 stalwarts to the young, up-and-coming names within UK construction.
Berkeley Group (BKG) hit the headlines this week after the UK’s most recognisable housebuilder was officially rewarded with promotion back to the UK 100 less than a year after the company was booted out of the blue-chip index. And just to keep shareholders excited, Berkeley is set to report its Q1 results on Wednesday.
Having been the hardest hit in the aftermath of the UK’s vote to leave the European Union, Berkeley was dumped from the UK’s largest index in November 2016. Yet just days later, the company’s shares rocketed over 8.5% following the announcement that is had boosted half-year profits by a third.
This kick-started an impressive run of form which has seen shares increase by 33% over the course of 2017, on course for its 9th consecutive positive week and currently trading at its highest level since 2015.
Will results on Wednesday next week (6th Sept) see the share price rally reach a climax? Or will a positive Q1 results release help lift Berkeley to a fresh all-time high, bettering December 2015’s record mark?
Just this week, UK 100 giant Barratt Developments (BDEV) traded a fresh 20-month high. Having languished at 2-year lows just last summer after the UK’s EU referendum, its been a strong turn around for the company, with shares now 90% higher than they were at the depths of July 2016’s lows.
2017 hasn’t been all plain sailing for Barratts, however. Shares seemingly topped out after the company’s 10 May trading update at 625p, eventually falling by almost 11.5% to lows of around 560p in June. While the tide changed for BDEV following the government’s re-commitment to its ‘Help-to-Buy’ scheme, it took almost 2 months for Barratt shares to eventually overcome May’s highs to notch a fresh 2017 best.
On Wednesday, Barratt too reports its full-year results. Will we find another fresh high being plummed by BDEV shares? Or might it be a funny case of de ja vu for shareholders, having seen shares fall 2.9% after its FY 2016 results?
While it may be a lesser known name withing the sector, Bovis Homes (BOV) still has an annual revenue of over £1bn. Shareholders of the housebuilder will be hoping for a positive lead from BDEV as it reports the day after its UK 100 peer Barratts.
One of last UK Housebuilders to recover to its pre-Brexit highs, having only overcome the mark in early August, can it too extend a 28% YTD rally to a fresh 2-year high?
Just because the weather is taking a turn for the worse, doesn’t mean you should be left out in the cold. Accendo Markets offers an award-winning research service to make sure our customers are kept informed of the latest company results before the market opens. On a pivotal week for UK housebuilders, you too can enjoy access to it by signing up to have it delivered directly to your inbox, daily. Will you play your cards right?
Mark Crouch, Trader, 1 September 2017
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.
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