4 FTSE 100 Stocks Defying The Broader Market Trends

The outbreak of COVID-19 from China which now spread in about 220 countries and has brought turmoil in the global financial market, and the UK market is no exception. As on 24 April 2020, the broader index of the UK – the FTSE 100 has plummeted about 24% on a YTD basis, while it is down ~23% year over the period. Also, the FTSE 100 has tested a level which was last seen in January 2016. And current market meltdown dragged FTSE 100's 5-year return to negative 18.65%, which suggest we are in a bear market.

However, among the FTSE 100 constituent stocks, there are few counters which have significantly performed in the opposite of the broader market trend and offering a positive return on YTD and YoY basis.

AstraZeneca PLC (LON:AZN)

AstraZeneca is a pharmaceutical company, and the group is researching on antibodies which would help in neutralising the effect of the novel coronavirus.

Shares of AZN have performed significantly well amid this market meltdown. As on 24 April Market close, AZN’s share price was up by 38.9% on an annual basis and generated a return of ~ 8% on a YTD basis. The stock price increased around 18% in the last one month. The stock has significantly outperformed the index in the said period, and relative outperformance stood at ~80.4 (1 Year), ~41% (YTD) and 12% (1 Month).

Also, amid the sale season, where a majority of large-caps and indices are trading quite below their long-term crucial support level of the 200-day moving average, AZN shares are trading approximately 13% ahead of its 200-day SMA. In technical analysis, 200-day SMA considered as a very strong support level for a security or an underlying, a price below this reflects a long-term downtrend or a bearish trend.

Also, 14-day and 9-day Relative Strength Index (RSI) in AZN stocks are hovering near the overbought zone, which implies that despite a jolted market dynamics, AZN shares getting more buyers than sellers.

Further, amid bearish market sentiment, its shares are registering new 52-week highs, as on the last traded session AZN shares registered a new 52-week high of GBX 8,232.0 and ended the session at GBX 8,204 (on Friday, April 24th, 2020).

Pennon Group PLC (LON:PNN)

Next FTSE 100 performer amid this sale season is Gas, Water and Multi-utilities business, Pennon Group PLC. Its shares have edged higher defying the prevailing market condition, as the essential nature of its business model helping the shares to sustain against the present blow. On a YoY basis, shares have added approximately ~50.7% to the shareholders' wealth (as on April 24th, 2020), while on a year-to-date basis, the stock has generated a return of ~9.4%. And in last one month, its shares have leapt up approximately 11%. During the period discussed above, PNN stocks have relatively outperformed its benchmark index by 96%, 43.5% and 5%, respectively.

Further at the last closing price of GBX 1,121 (on April 24th, 2020), its shares have traded approximately 20% above the long-term crucial support level of the 200-day moving average. Moreover, at the last traded price, the stock is highly tilted towards its 52-week peak level of GBX 1,210.5 (registered as on February 21st, 2020).

Reckitt Benckiser Group (LON: RB.)

Shares of Reckitt Benckiser Group PLC (manufacturer of Dettol, Air Wick, Harpic, Lysol and many other globally household names) also moving against the broader market trend. Recent demand outburst of the personal hygiene products owing to COVID-19 pandemic driving the sales for the company. Consequently, the share price of the group defying the broader market trend. In last one year, shares have added ~ 8.2% (as on 24 April 2020 Market close) to the shareholders’ wealth whereas its benchmark FTSE 100 index sink ~ 23%. On a TD basis (mainly the period in which demand for health, hygiene and home care products shot up owing to corona pandemic), its shares traded rose ~6.6%. The relative outperformance of the group’s shares in year-over period and year-to-date basis against the FTSE 100 index stood at ~ 40.5% and 39.8%, respectively.

RB.'s price/200-day SMA ratio stood at 1.063x, which implies that its shares have traded approximately 6% above its long-term support level of the 200-day moving average. Further, the Moving Average Convergence Divergence (MACD) is rising, with the gap between the 12-day exponential moving average and the 26-day exponential moving average was positive, which is a positive technical measure.

At the last closing price of GBX 6,534 (on April 25th, 2020), RB. shares traded just 3.1% below its 52-week high price of GBX 6,744.0 (registered on September 27th, 2019).

Ocado Group PLC (LON:OCDO)

Shares of online grocery retailer Ocado is also among the large-cap stocks registering a positive price return amid this market crash. In a year-long period, OCDO shares have surged approximately 13% and relatively outperformed the benchmark index by 46.3%, and on a YTD basis, its shares have bagged approximately 26% and outperformed the benchmark index by 65% during the same period.

The secret sauce behind the recent surge in its share price is the unique business model of Ocado Group Plc. The company’s core operational activities are grocery retailing and the development and commercialisation of Intellectual Property (IP) and technology essential for the online retailing, logistics and distribution of grocery and consumer goods. It provides an end-to-end operating solution for online grocery retail business built upon technology and IP, suitable for operating its own retail business and those of its commercial partners.

The unprecedented surge in online shopping because of the Coronavirus epidemic, which compelled the British government to go for a lockdown to curb the spread of the novel virus. And exponential growth in coronavirus cases in the UK shifted consumer buying pattern online. However, the lockdown has badly impacted many economic activities, but for the online grocer, it came as a boon, and the group is capitalising on opportunities.

Further, at the last traded price of GBX 1,606.5 (on April 24th, 2020), its shares traded approximately 27% above its long-term crucial support level of the 200-day moving average, which reflects that the stock is in the long-term bullish zone when the broader market is steeply bearish.

The moving average convergence divergence (MACD) is also rising, and the difference between 12-day exponential average and the 26-day exponential average is positive, which is typically considered to be a positive trend in an underlying.