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At the end of January, the array FTSE Retailers report quarterly results. There were some winners and some losers from that group. He picked two UK stocks that he thought would be worth buying and another two of his that he avoided buying in February.
1. Marks and Spencer
The best performers for FTSE-listed grocers last quarter were: Marks and Spencer (LSE:MKS) It’s on my shopping list.Hybrid retailers had a great quarter beating the big guys and boasting top food and clothing sales growth Tesco When Sainsbury’sThis has increased our market share on both fronts. And with a plan to accelerate the store rotation plan, FTSE250 The group has the potential to grow further.
Moreover, M&S is slowly improving its balance sheet position and paying down its debt. Combine that with the discounted valuation multiples and I’ll be buying more shares in the next few days.
index |
Marks and Spencer |
industry average |
---|---|---|
Price Earnings Ratio (P/E) |
9.4 |
14.2 |
Sales (P/S) ratio |
0.3 |
0.3 |
Price to book value (P/B) ratio |
0.9 |
1.4 |
Price Earnings Ratio (PEG) Ratio |
0.1 |
0.1 |
2. Dunelm
The doom and gloom surrounding home improvement stocks has faded in the past few months as the numbers prove resilience. Danellum (LSE:DNLM) once again proved the skeptics wrong with yet another strong trading update. So it’s no surprise that the stock is up 60% from his September low.
The company reported lower margins than expected, but that all seems pointless when other, more meaningful metrics provide better numbers. Sales were up 18% last quarter. , an increase of 48% from pre-pandemic levels. Additionally, the Board now expects annual pre-tax profit to range from £131m to £186m, which is above analyst consensus.
3. Dr. Martens
Conversely, doctor martens (LSE:DOCS) is getting boot from me. It’s not hard to see why. Because the stock has already fallen 30% this year.
The shoe store’s latest update was full of bad news, largely due to supply chain issues related to bottlenecks at its new distribution center in Los Angeles. As a result, the company now expects weak US sales this year.
As a result, the company expects profits to decline significantly. Wholesale earnings could take a hit from him by £15m to £25m, and EBITDA would lose around £16m to £25m, with supply costs for his chain costing him £8m Includes £11 million.
4. Naked Wine
i also avoid naked wine (LSE: wine). The pandemic favorite has fallen out of favor since Covid restrictions were lifted, prompting management to reverse the course of the ‘grow at all costs’ model. recently turned into a sweet update. The company reported a fairly bright string of numbers from its most recent quarter and updated its forecasts for better earnings.
Nonetheless, I’m not sure about its long-term potential. There’s certainly hope for retailers to age like fine wine. I don’t think it’s growing fast enough to justify the higher opportunity cost of investing in other UK stocks.
The Motley Fool UK first listed 2 stocks to buy and 2 stocks to avoid in FTSE retail shares in February.
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John Chun It belongs to Marks And Spencer Group Plc. The Motley Fool has no positions in any of the shares mentioned. The views expressed about the companies mentioned in this article are my own and may differ from the official recommendations I make on subscription services such as Share Advisor, Hidden Winners and Pro. At The Motley Fool, we believe that considering diverse insights makes us better investors.
Motley Fool UK 2023
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