Holiday firm, TUI, is flying after an upbeat trading update which saw its shares rise by 11.5 per cent to 902.40p at the time of writing.

Its first quarter results revealed a 7.7 per cent jump in turnover to 3.85 bn EUR for the three months to 31 December. Although the tour operator reported below forecast quarterly profit, it looks like the demise of rival Thomas Cook has boosted its sales as strong holiday bookings for the summer have improved its full year earnings estimate, which now stands at between 850 million and 1.05 billion EUR.

So, can TUI continue its upward trajectory or is it likely to be grounded by external factors?

The holiday market is facing external pressure at the moment, with rising fuel prices, currency fluctuations and the continued delay of the new Boeing 747 Max. But TUI has seen an increase in bookings of 14 per cent and its strategic initiatives, including a broader digital focus and the expansion of its growing Hotels & Cruise business, look to be paying off. Chief executive, Fritz Joussen said of the rise in summer bookings that he “cannot remember any start in the year where that has happened” which must be good news for investors.

Some analysts have raised concerns about the potential impact of coronavirus though with Russ Mould from AJ Bell pointing out that while this is a solid update, “the message may not be the same in three months’ time if coronavirus is not contained.”

For now, though, it is a strong trading update and investors must be pleased with the way TUI is flying.

It’s equally good news for homeware retailer, Dunelm, which saw its shares rise by 12 per cent to a record high after its sixth profit upgrade in a year.

In the first half of the financial year, Dunelm’s total revenue climbed six per cent to £585m, and impressively, after its website revamp last November, online sales climbed 33 per cent. Profit expectations for the homeware retailer are now at the top end of the £135-£137.3m range, and its share price, which has doubled in the past year, stands at 1,298.00p at the time of writing.

So, can Dunelm keep up this stellar performance or is it time for investors to think about cashing in? Analysts think the retailer still has room for growth – Peel Hunt raised its target price from 1250.00p to 1325.00p, and UBS said there were ‘clear drivers for growth’ in the second half of the year for Dunelm.

It pointed to Dunelm’s website upgrade and other multi-channel sales improvements, including a sponsorship deal with ITV’s This Morning as it added £5 million to its profit forecast for the homeware retailer for 2020, although it did add that this assumed no serious disruption from coronavirus.

It was wounding news for adhesives specialist Scapa though which supplies much of the MedTech sector, as it saw its shares plummet by a staggering 35 per cent. The adhesives specialist issued a profit warning revealing that trading profits for the year to March 31 will be below consensus at around £28 million.

Its share price now stands at 194.00p at the time of writing, meaning it has almost halved since June last year. The company has blamed its slower progress on making cost efficiencies for the profit warning although it says it expects full year revenues to be ‘broadly in-line with market expectations.’

Analysts at Jefferies are maintaining a price target of 320p for the stock, but they have forecast a 20-25 per cent cut to consensus EPS Estimates for 2020. Joint house broker, Berenberg, has reduced its target price from 272p to 250p and it has slashed its profit expectations by 22 per cent. However, it said: “While volatility will persist for a period of time, over the longer term our thesis on Scapa has not changed” highlighting a strong pipeline of healthcare opportunities for the firm.