Three FTSE 100 Stocks To Watch For: JD Sports Fashion Plc, Glencore Plc and Carnival Plc

Three FTSE 100 Stocks To Watch For: JD Sports Fashion Plc, Glencore Plc and Carnival Plc

JD Sports Fashion Plc

JD Sports Fashion PLC (LON: JD.) provides sportswear and branded casual wear from physical stores as well as e-commerce platforms. The company has its operations in more than 15 territories internationally with 700 plus physical stores.

JD-Recent developments

The leading retailer of sports, fashion and outdoor brands, JD Sports Fashion plc released an update regarding the company's acquisition of Footasylum following the Competition and Markets Authority's (CMA) announcement on Phase I and its intention to refer it to Phase II.

The company believes that the addition of Footasylum will be good for the company in terms of bringing differentiated customer demographic and fashion-led product range which shall complement the existing setup. The company shall also reap operational and strategic benefits from the blend of these businesses. The CMA looks forward to referring its review to Phase II. The company is looking forward to discussions with the CMA on the guidelines to proceed to Phase II or any possible solution at the present stage only.

As per the CMA's opinions, the acquisition of Footasylum would give rise to a credible likelihood of a significant reduction of competition. However, JD Sports Fashion Plc believes that the acquisition would ease the competition in the clothing and footwear retail sector in which the companies are operating. The company has acquired seventy Footasylum stores in the United Kingdom successfully and believes this move does not negatively affect the competitive environment. Brands and buyers can opt to sell or buy from multiple channels, e-commerce platforms, both in the domestic market and internationally. However, the brands are creating their own marketing channels to promote and push their products to buyers.

JD-Business performance for H1 FY20

(Source: London Stock Exchange)

Due to strong like for like sales growth in global Sports Fashion fascias of 12 per cent, which was inclusive of encouraging growth of more than 10 plus per cent in the core UK and Ireland Sports fascias, the company’s revenue surged by 47 per cent to £2,721.2 million in the first half of the fiscal year 2020 in contrast to £1,846.3 million reported in the first half of the fiscal year 2019. The company added another feather in its cap in terms of Group EBITDA, which increased by 37 per cent to £235.2 million in the first half of the fiscal year 2020 on a comparable accounting basis in contrast to £171.8 million in the first half of the fiscal year 2019. The company’s profit excluding taxation and exceptional items surged by 36 per cent to £166.2 million on a comparable accounting basis in H1 FY20 versus £121.9 million in H1 FY19. The company’s profit before taxation (reported) surged by 6.6 per cent to £129.9 million in the first half of the fiscal year 2020 taking into account the net adjustments of £7.6 million (which were raised due to transition of Leases and exceptional items to IFRS 16) in contrast to £121.9 million in the first half of the fiscal year 2019.

The company increased its presence across mainland Europe by opening 23 JD stores. The company also increased its number of stores across the Asia Pacific region by opening 7 JD stores. Moreover, in the United States, the 6 JD physical stores are now getting a leg up with a trading website.

JD-Share price performance

Daily Chart as at Nov-25-19, before the market close (Source: Thomson Reuters)

On 25th November 2019, at the time of writing (before market close, GMT 11:04 AM), JD Sports Fashion Plc shares were trading at GBX 800, up by 5.42 per cent against its previous day closing price. Stock's 52 weeks low is GBX 318.50, while it touched a fresh 52 week high in day’s trade. At the time of writing, the share was trading 0.57% higher than its previous 52w High and 151.17% higher than its 52w low. Stock’s average traded volume for 5 days was 2,057,020.80; 30 days - 1,618,075.27 and 90 days - 1,670,583.83. The average traded volume for 5 days was up by 27.13% as compared to 30 days average traded volume. The company’s stock beta was 0.84, reflecting lower volatility as compared to the benchmark index. The outstanding market capitalisation was around £7.67 billion.

 

Glencore Plc

One of the world’s prominent diversified natural resource companies, Glencore Plc (LON: GLEN) produces and supplies crude oil products, coal, metals and minerals, and agriculture products.

GLEN-Trading update for Q3 FY19

In later part of October 2019, the company released its third-quarter production report for Financial Year 2019. According to the report, the company’s copper production (own sourced) plunged by 4 per cent to 1,015,800 tonnes as compared to the same period last year. The cobalt production (own sourced) of the company surged by 21 per cent to 34,400 tonnes in its third-quarter production for the financial year 2019 in contrast to the same period last year. The zinc production (own sourced) by the company increased by 3 per cent to 809,200 tonnes for the third quarter of 2019 in contrast to the same period last year.

The nickel production (own sourced) by the company plunged by 2 per cent to 89,400 tonnes in contrast to the same period the previous year. The coal production by the company surged by 8 per cent to 104 million tonnes in the third quarter of the fiscal year 2019 as compared to the third quarter of the fiscal year 2018.

GLEN-Business performance in H1 FY19

The company’s adjusted EBITDA plunged by 32 per cent to $5.6 billion against the backdrop of lower commodity prices and operational/cost challenges in the company’s African copper portfolio. The company’s Net income attributable to equity holders plunged to $0.2 billion in H1 FY19 from $2.8 billion in H1 FY18 due to lower adjusted EBITDA and $0.9 billion of impairment charges related to Chad oil and African copper assets. The benefit of a stronger US dollar during the period was offset by operational and cost challenges faced by the company in the African copper business.

The company had announced $2 billion buyback in February 2019, out of which approximately $900 million were remaining. To maintain the balance of equity cashflows, the company favour buybacks.

The company looks forward to its rich portfolio, which shall thrive in the global economy and create value for all stakeholders in the long-term.

GLEN-Share price performance

Daily Chart as at Nov-25-19, before the market close (Source: Thomson Reuters)

On 25th November 2019, at the time of writing (before market close, GMT 11:09 AM), Glencore Plc shares were trading at GBX 249.10, up by 0.89 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 343.90/GBX 218.60. At the time of writing, the share was trading 27.56% lower than its 52w High and 13.95% higher than its 52w low. Stock’s average traded volume for 5 days was 25,851,620.00; 30 days - 29,486,070.30 and 90 days - 35,506,059.00. The average traded volume for 5 days was down by 12.33% as compared to 30 days average traded volume. The company’s stock beta was 2.08, reflecting higher volatility as compared to the benchmark index. The outstanding market capitalisation was around £32.99 billion.

Carnival Plc

The world's largest leisure travel company, Carnival Plc (LON: CCL) is amongst the most profitable and financially strong companies in the cruise and vacation industries, having a robust portfolio of cruise lines such as Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, P&O Cruises, Costa Cruises, AIDA Cruises and Cunard. The group has more than 100 ships and 700 plus ports across the globe. The company’s shares trade both on the LSE and NYSE.

CCL-Recent developments

Quarterly dividend was announced by the company of $0.50 cent per share. The company is expected to pay a dividend on December 13, 2019. Ordinary shares dividend will be payable in USD or sterling.

CCL-Business performance for Q3 FY19

(Source: London Stock Exchange)

The company’s U.S. GAAP net income stood at $1.78 billion with diluted EPS recorded at $2.58 in the third quarter of the fiscal year 2019. The adjusted net income of the company was recorded at $1.82 billion in Q3 FY19.

CCL-Share price performance

Daily Chart as at Nov-25-19, before the market close (Source: Thomson Reuters)

On 25th November 2019, at the time of writing (before market close, GMT 11:14 AM), Carnival Plc shares were trading at GBX 3,215.00, up by 1.03 per cent against its previous day closing price. Stock's 52 weeks High and Low is GBX 4,696.00/GBX 3,037.00. At the time of writing, the share was trading 31.53% lower than its 52w High and 5.86% higher than its 52w low. Stock’s average traded volume for 5 days was 546,215.60; 30 days - 698,108.60 and 90 days - 714,314.97. The average traded volume for 5 days was down by 21.76% as compared to 30 days average traded volume. The company’s stock beta was 0.71, reflecting lower volatility as compared to the benchmark index. The outstanding market capitalisation was around £22.94 billion.

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