Pets At Home share price at 5 month high ahead of FY results
Fiona Cincotta May 25, 2021 12:16 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.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.