Four Stocks To Watch: AstraZeneca, Asos, Activision, Burford

AstraZeneca PLC 

AstraZeneca PLC (AZN), headquartered in Cambridge, the United Kingdom, is a biopharmaceutical company engaged in the development and commercialization of prescription medicines with operations in more than 100 countries. It’s primary focus areas for the treatment of diseases include oncology, respiratory, inflammation & autoimmunity, neuroscience, cardiovascular, renal & metabolism, infection & vaccines.

Recent developments

Farxiga (New Drug Application by the company) is known for controlling the glycaemic index in the body along with supporting weight loss and keeping check on blood-pressure, when used in combination with diet and exercise in adults with diabetes. FDA (Food and Drug Administration, United States) issued complete response letter regarding the use of Farxiga (dapagliflozin) for adult patients with type-1 diabetes. The company is awaiting FDA guidelines to proceed further.

Financial highlights for H1 FY19

The company’s product revenue stood at $11,183 million in H1 FY19. The company’s gross margin (reported) stood at 80 per cent in H1 FY19. This can be attributed to the revenue flow from the mix of products and optimisation of manufacturing processes. The company’s operating expenses (reported) stood at $8,238 million and core operating expenses stood at $6,922 million in H1 FY19.

The company’s reported R&D Expenses stood at $2,622 million in H1 FY19. The company’s reported SG&A expenses stood at $5,457 million in H1 FY19. The company’s EPS (reported) stood at $0.56 in H1 FY19. The company’s core EPS stood at $1.62 in H1 FY19. The company announced first interim dividend of $0.90 per share in H1 FY19.

AZN Share Price performance

Daily Chart as at July-26-19, before the market close (Source: Thomson Reuters)

At the time of writing (as on July 26, 2019, at 11:03 AM GMT), shares of AstraZeneca PLC were quoting at GBX 6,814 per share; down by 0.52 per cent against the yesterday’s closing price level. The company’s market capitalisation (outstanding) stood at £90.05 billion.

In the last 52-weeks, shares of AstraZeneca PLC have registered a high of GBX 6,895.00 (as on Jul 25, 2019) and a low of GBX 5,312.00 (as on Jan 28, 2019). At the current trading level, as quoted in the price chart, its shares were trading 1.17 per cent below the 52-week high price level and 28.27 per cent above the 52-week low price level.

The stock’s volume (before the market close, at the time of writing) stood at 533,482. Stock’s average traded volume for 5 days was 2,146,841.80; 30 days- 1,678,913.37 and 90 days – 1,993,089.31.

The average traded volume for 5 days surged by 27.87 per cent as against 30 days average traded volume. The company’s stock beta was 0.92, which means it was as volatile as the benchmark index.

The shares of the company (at the time of writing) were trading above the 60-days and 200-days SMA, which shows a positive trend in the stock price movement.

In the past 1 year, shares of AstraZeneca PLC have delivered a positive price return of 23.13 per cent. Also, on a year-to-date basis, the stock was up by approximately 16.64 per cent and surged by 16.32 per cent in the past three months.

Share’s RSI for the 30-days, 14-days and 9-days stood at 64.64, 70.48 and 74.47 respectively. Also, the stock’s 3-days RSI stood at 86.37. The volatility of the stock for 200 Days, 90 Days, 30 Days stood at 24.18, 23.66 and 26.41 respectively.

 

 Asos PLC 

ASOS PLC (ASC) is a British online fashion and cosmetic retailer with an active presence in the UK, US and Continental Europe. Apart from being a fashion company, the group calls itself a technology company and is one of the leading fashions stops globally. Around 60 per cent of the products sold are exclusively through its platform, and the company operates its own brand of clothes as well. The company’s operations are differentiated in three operating segments: Retail sales, Delivery receipts and Third-party revenues.

Trading Statement Released on 18-July 2019 

For the four month period ending 30 June 2019, sales in the US and the Europe region were slowed down by operational glitches with the rollout of its new automated warehouses, though robust sales in the UK and Rest of The World helped it achieve growth in sales to the tune of 12 per cent on a reported basis. The warehouse hub in the US struggled to build up stock, and European warehouse was unable to deal with the volume of stock it was expected to process due to new automation software, impacting the stock availability, sales and cost base in these regions. In FY19, the company expects to incur £47m in transition costs and £3.5m in restructuring costs, leading to pre-tax profits of £30-£35m, reflecting annual profits which will be as much as 46 per cent lower than expected. The company expects net debt at the year-end to be approximately £100m and growth levels for the rest of the financial year are expected to be impacted by the lack of stock availability.

Financial Highlights for H1 FY19 (£, million)

Despite a challenging backdrop, disruptions from large scale transformational projects and short term pricing, marketing and inventory decisions, the revenue in the period H1 FY19 rose 14 per cent to GBP 1,314.5 million (H1 FY18: GBP 1,158.1 million), and retail sales grew by 13 per cent to GBP 1,281.3 million (H1 FY18: GBP 1,131.3 million). Gross profit rose by 12 per cent to GBP 639.9 million, and gross margin stood at 48.7 per cent (H1 FY18: 49.2 per cent). Driven by a decline in profit after tax, diluted earnings per share fell by 88 per cent to 3.6 pence in H1 FY19.

ASC Share price performance

Daily Chart as at July-26-19, before the market close (Source: Thomson Reuters)

At the time of writing (as on July 26, 2019, at 12:05 PM GMT), shares of ASOS PLC were quoting at GBX 2,441 per share; up by 0.95 per cent against the yesterday’s closing price level. The company’s market capitalisation (outstanding) stood at £2.03 billion.

In the last 52-weeks, shares of ASOS PLC have registered a high of GBX 6,298.00 (as Jul 26, 2018) and a low of GBX 2,033.00 (as on Jul 19, 2019). At the current trading level, as quoted in the price chart, its shares were trading 61.3 per cent below the 52-week high price level and 20.06 per cent above the 52-week low price level.

The stock’s volume (before the market close, at the time of writing) stood at 168,144. Stock’s average traded volume for 5 days was 1,243,577.40; 30 days- 814,643.43 and 90 days – 618,795.13.

The average traded volume for 5 days surged by 52.65 per cent as against 30 days average traded volume. The company’s stock beta was 1.77, which means it has higher volatility than the benchmark index.

The shares of the company (at the time of writing) were trading below the 60-days and 200-days SMA, which shows a negative trend in the stock price movement and could further move down from the current trading levels.

In the past 1 year, shares of ASOS PLC have delivered a negative price return of 61.06 per cent. However, on a year-to-date basis, the stock was up by approximately 6.19 per cent and plunged by 40.53 per cent in the past three months.

Share’s RSI for the 30-days, 14-days and 9-days stood at 40.57, 42.37 and 45.96 respectively. Also, the stock’s 3-days RSI stood at 67.65. The volatility of the stock for 200 Days, 90 Days, 30 Days stood at 81.63, 62.01 and 92.40 respectively.

 

 Activision Blizzard Inc 

Activision Blizzard Inc (OH8X) develops entertainment content (which is interactive in nature) and provide services online through gaming platforms such as gaming consoles, laptops, tablets, PCs and cell phones. The genres include action, adventure and simulation.

Financial highlights Q1 FY19

The company’s net revenues (GAAP) stood at $1.83 billion in Q1 FY19 as against $1.97 billion for Q1 FY18. The company’s net revenues (GAAP) from digital channels stood at $1.39 billion in Q1 FY19. The company’s operating margin (GAAP) stood at 31 per cent in Q1 FY19. The company’s diluted EPS (GAAP) stood at $0.58 in Q1 FY19 as against $0.65 Q1 FY18.

Activision Blizzard Share Price performance

Stock’s 52 weeks High and Low is USD 83.89 /USD 34.42. The outstanding market capitalisation was around $36.15 billion with a dividend yield of 0.51 per cent. The beta of the company stood at 0.9, which means it is slightly less volatile than the benchmark index.

Burford Capital Ltd 

Burford Capital Limited (BUR) is into financial services space, focused on delivering services such as advisory related to legal and litigation aspects along with financing and risk mitigating solutions. The company recently released its half-yearly results.

Financial highlights for H1 FY19

The company’s PAT stood at $225 million in H1 FY19 as against $166 million in H1 FY18. The company’s profit from operations stood at $251 million in H1 FY19 as against $183 million in H1 FY18. The company’s total assets stood at $2.25 billion in H1 FY19 as against $1.64 billion in H1 FY18. The company declared a dividend of 4.17 cents per share in H1 FY19 as against 3.67 cents per share in H1 FY18.

 

Burford Share price performance

Daily Chart as at July-26-19, before the market close (Source: Thomson Reuters)

At the time of writing (as on July 26, 2019, at 01:58 PM GMT), shares of BUR shares were quoting at GBX 1,519 per share; down by 1.29 per cent against the yesterday’s closing price level. The company’s market capitalisation (outstanding) stood at £3.37 billion.

In the last 52-weeks, BUR shares have registered a high of GBX 2,075.00 (as Aug 29, 2018) and a low of GBX 1,288.00 (as on Dec 18, 2018).                           

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