CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

2 Retail Stocks to Watch

By Capital.com Research Team

10:33, 28 September 2023

filadendron / Getty Images
Any material provided is for information purposes only and is not investment advice. Any opinions that may be provided are not a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided. If you rely on the information on this page then you do so entirely on your own risk.

Marks & Spencer (MKS)

Financials:

Marks & Spencer reported strong growth in both its Food and Clothing & Home businesses for the first 19 weeks of the financial year. Food sales increased by over 11%, driven by price changes, while Clothing & Home sales grew by more than 6%, primarily due to in-store growth. Despite economic uncertainties, the company expects significant improvements in full-year profit growth and half-year results compared to previous expectations of modest revenue growth.

Technical View:

Marks & Spencer’s share price has been locked in a powerful uptrend since the turn of the year. Recent price action has seen the shares break out from a wedge pattern and retest trend highs. We are now seeing prices consolidate at trend highs within a series of small candles. This form of high and tight consolidation signals a reluctance to pull back, which suggests that the shares are being accumulated ahead of a potential move higher.

MKS Daily Candle Chart

 

MKS Daily Candle ChartTradingView

Next (NXT)


Financials:

Next's half-year sales grew 5.4% to £2.6 billion, benefiting from higher wages and warm weather in late spring and early summer. Pre-tax profit rose 4.8% to £419.8 million, driven by increased sales and higher full-price sales of their own-brand products. They improved free cash flow to £438.1 million and reduced net debt to £1.7 billion. Full-year profit guidance was raised to £875 million. Next completed £167 million in share buybacks, plans to spend £52 million more, and announced an interim dividend of 66p per share.

Technical View

Next’s uptrend is decidedly less pretty than Marks & Spencer’s, but we have seen prices carve out a rising series of higher swing lows. This has created a steepening trendline fan which suggests underlying price momentum is increasing. Recent price action has seen the shares pull back to a key area of trend support created by the broken summer swing highs. Should Next’s uptrend continue, we would expect these broken summer swing highs to provide support moving forward.
 

NXT Daily Candle Chart

BTC/USD

96,927.25 Price
+0.840% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 50.00

Oil - Crude

70.05 Price
+0.300% 1D Chg, %
Long position overnight fee 0.0036%
Short position overnight fee -0.0255%
Overnight fee time 22:00 (UTC)
Spread 0.030

XRP/USD

2.65 Price
+0.710% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01323

Gold

2,641.02 Price
-0.120% 1D Chg, %
Long position overnight fee -0.0170%
Short position overnight fee 0.0088%
Overnight fee time 22:00 (UTC)
Spread 0.30

 

NXT Daily Candle ChartTradingView

Risk management

It’s worth noting that despite the robust high street presence of both Marks & Spencer and Next, rising inflation may impact consumer spending. Cost-saving measures from both businesses may not fully offset increased costs, potentially leading to higher prices.

Marks & Spencer are set to release half year earnings on 8th November 2023.

Next are set to release Q3 earnings on 1st November 2023.

Related topics

Rate this article

Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 660,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading