Pets At Home share price at 5 month high ahead of FY results
Fiona Cincotta May 25, 2021 7:16 PM
Bumper results are expected as pet ownership surged across the pandemic.
When: Thursday 27th May
What to expect?
Pets at home has been one of the notable beneficiaries from the pandemic as customers sought out furry companions in lockdown, fueling a boom in pet ownership. Estimates suggest that around 3 million pets found a home in lockdown and dog treats are now included in the ONS inflation basket!
In the three months to December, like for like sales jumped 17.6% despite a 7% decline in the number of transactions. Households are spending more than before pampering their pets with both essentials and treats. Investors will be hoping for a repeat performance in the final quarter.
It’s not just pets, treats and essentials that Pets At Home offers. At the end of last year, it also bought The Vet Connection boosting its portfolio of services. Given that pet buying is likely to ease now lockdown restrictions have been removed, the services arm of the business such as grooming, and vets will come more into focus.
The company now expects profits of £85 million up 10% on previous guidance.
Where next for Pets At Home share price?
The Pets At Home share price has been trading in an ascending channel since early March. It trades at the upper reaches of the ascending channel. The share price also trades above its 50 & 100 sma on the daily chart indicating an established bullish trend.
The RSI is in bullish territory, supportive of further gains whilst it remains out of overbought territory. There could be some consolidation should the RSI move over 70.
Buyers will be looking for a move towards 175p the all time high reached in early January.
It would take a move below 440p to negate the current uptrend.
Support is seen at 425p the 50 day ma and then 420p the lower band of the ascending trendline, which coincides with the 100 day ma and could prove a tough nut to crack.
How to trade with City Index
Follow these easy steps to start trading with City Index today:
- Open a City Index account, or log-in if you’re already a customer.
- Search for the market you want to trade in our award-winning platform.
- Choose your position and size, and your stop and limit levels.
- Place the trade.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.