NXT, HWDN, KGF: Stocks to watch amid negative disposable income crisis

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NXT, HWDN, KGF: Stocks to watch amid negative disposable income crisis

 NXT, HWDN, KGF: Stocks to watch amid negative disposable income crisis
Image source: © Michaeljayberlin | Megapixl.com

Highlights

  • According to recent data from the UK’s third leading supermarket group, Asda, about one-fifth of UK households faced a negative disposable income crisis in June.
  • Low-income households were the worst hit, with around 20% of UK households having negative disposable income in June, resulting in a shortfall of £60 per week.
  • The household disposable income in the UK fell by 18% year-on-year last month.

About one-fifth of UK households faced a negative disposable income crisis in June, a recent set of data from the UK’s third leading supermarket group Asda revealed. With the cost-of-living crisis worsening, UK citizens are struggling to balance what they earned and what they need to spend on essentials such as utility bills, rent, groceries, etc. 

The Asda Income Tracker revealed that household disposable income in the UK fell by 18% year-on-year last month as the cost-of-living crisis squeezed family budgets. The sharp rise in inflation meant that households had £43.95 a week in June or £175.80 per month, which is worse than last year.

Low-income households were the worst hit, with around 20% of UK households having negative disposable income in June, resulting in a shortfall of £60 per week. After paying all the bills, the average household is left with only £200 per week in June. It has fallen for eight consecutive months to a level since December 2017.

UK consumers’ confidence levels have taken a nosedive as the wages too continued to keep pace with the rising inflation in June, which has touched 9.4%. The inflation rates are expected to hit a high of 11% by the end of the year.   

Amid the sharp rise in inflation, let us explore 3 retail stocks you can keep a close watch on.

Next Plc (LON: NXT

On Monday, the multinational retail brand Next Plc had a market cap of £8,642.55 million. The clothing company has a positive EPS of 5.31. The FTSE 100 listed yearly return figures over the past year and the YTD basis have been disheartening, with the negative zone at -17.47% and -18.06%, respectively. Next Plc’s shares were trading at GBX 6,680.00 and were down by 0.09% at 2:20 PM as of 25 July 2022.

Howden Joinery Group Plc (LON: HWDN

The FTSE 100 constituent, Howden Joinery Group Plc, engaged in the sale of kitchens and joinery products, had a market cap of £3,789.78 million as of 25 July. Its yearly return was in the negative territory at -26.07%, as was its YTD return which dipped to -26.32%. Howden Joinery Group Plc’s shares were trading at GBX 664.00 and were down by 1.43% at 14: 30 PM as of 25 July 2022.

Kingfisher Plc (LON: KGF

The FTSE 100 listed international home improvement company, Kingfisher Plc, had a market cap of £5,282.77 million as of 25 July. The company has a positive EPS of 0.40. Its yearly return was in the negative zone at -28.60%, while its YTD return dipped to -20.81%. Kingfisher Plc’s shares were trading at GBX 268.10, up by 1.02% at 14: 30 PM as of 25 July 2022.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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