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.
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