How to trade the AO World’s share price around Wednesday’s full-year results
AO World’s forward-looking statements regarding its sales projections for the upcoming fiscal year will be close watched by the market.
How to trade the AO World’s share price around Wednesday’s full-year results
AO World is set to release its full-year results on Wednesday. The online electrical retailer has undergone significant restructuring to improve its financial health and profitability. This overhaul, which included substantial cost-cutting measures, showed promising results in the company's half-year report to September, with a pre-tax profit of £13 million compared to a £12 million loss in the previous year.
Despite this turnaround, AO World warned that annual sales were expected to decrease by approximately 10%. However, similar to its competitor Currys, the company may benefit from improved consumer confidence, potentially leading to increased spending on higher-priced items.
Investors will be particularly interested in any forward-looking statements from AO World regarding its sales projections for the upcoming fiscal year.
Analyst ratings for AO World
LSEG Data & Analytics shows a consensus analyst rating of between ‘buy’ for AO World – 2 strong buy, 2 buy, 1 hold and 1 sell - with the mean of estimates suggesting a long-term price target of 107.86 pence for the share, around 5% below its current price at 113 pence (as of 24 June 2024).
Technical outlook on the AO World’s share price
The AO World share price, which has risen around 21% year-to-date, has been gradually rising from its August 2022 low at 37.20p to its 2 ½ year early-June high at 116p.
AO World Weekly Candlestick Chart
The January 2022 peak and early-June 2024 highs at 114.8p-to-116p remain in sight, a rise above which would put the June-to-July 2020 lows at 131p-to-132.2p lows on the map. Another potential upside target is the 200-week simple moving average (SMA) at 140.30p.
The early-June correction in to the mid-June low at 102p seems to have run its course with further upside likely to be seen.
AO World Daily Candlestick Chart
Potential slips may find support along the 55-day SMA at 107.9p.
The medium-term uptrend will remain intact, while the late-April and current June lows at 102p-to-101p hold on a daily chart closing basis.
Unexpected failure at this support zone would put the August 2022 to June 2024 uptrend line and 200-day SMA at 95.2p-to-94.1p on the map.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Forex
- Shares
- Indices
