Pets At Home share price at 5 month high ahead of FY results
Fiona Cincotta May 25, 2021 7:16 AM
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.
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