EUR/USD Latest – Ranging Ahead of Next Week’s US Data and FOMC Minutes
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10/06/21 10:53
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Tony Sycamore analyses three ASX-listed Healthcare stocks and explores if they build on recent gains. Source: Bloomberg Indices Shares CSL Limited Health care COVID-19 ASX Tony Sycamore | Market Analyst, Australia | Publication date: Monday 06 February 2023 The ASX 200 added 47 points (0.67%) on Friday to close at 7558, as the ASX 200 locked in a fifth straight week (0.86%) of gains. At a sector level, gains were led by the Healthcare (+4.81%), Real Estate (+4.35%), and IT (+4.30%) sectors. At the same time, the Energy sector fell -2.14% to be back to flat on the year. Driving the Healthcare sector's outperformance, heavyweight CSL surged 6.5% to its highest weekly close in fourteen months ($314.27). Many surgeries and treatments that were delayed during Covid have resulted in long waiting lists and a solid stream of future demand for many Healthcare companies. In this week's Three Stocks to Watch, we review the recent news and charts of three ASX-listed Healthcare stocks and if they can build on recent gains. CSL (CSL) Covid is now mainly in the rear vision mirror, and aided by its acquisition of Vifor Pharma, a Swiss biotech that specialises in renal disease and iron deficiency, CSL has a bigger footprint within the industry and a more diversified earnings stream than ever before. This has resulted in broker upgrades ahead of CSL's 1H2023 earnings report on Tuesday, February 14th. As viewed on the chart below, the share price of CSL had, until late last week, spent the past three years trading in a range between $340 and $240 as Covid increased costs and reduced the number of plasma collections - an essential raw material used in many of CSL's therapies. After last week's storming run higher, CSL is eying a good layer of resistance at $320, coming from November 2021 and November 2020 highs. Should a break of this resistance occur, it would then set up a test of the February 2020 all-time high of $342.75. On the downside, should CSL fall back into the trend channel and below a layer of horizontal support $305/300, it would warn the break higher has failed and of another round of sideways price action. CSL daily chart Source: TradingView Cochlear (COH) Cochlear, the bionic ear-making company, was another healthcare company whose product offerings were impacted during the pandemic and whose share price was range bound until late last week. Ahead of its 1H2023 earnings report on Wednesday, February 15th, the share price of Cochlear has broken above downtrend resistance to be eyeing a good band of resistance between $226 and $236 (from highs in April and August of last year). Should the share price see a sustained break above $236, it would open up a test of the $257.76 all-time high. On the downside, should the share price of COH fall back into the trend channel and below a layer of horizontal support $215/210 area, it would warn the break higher has failed and of more sideways price action in the foreseeable future. Cochlear daily chart Source: TradingView Sonic Healthcare (SHL) Unlike the two healthcare companies above, Sonic Healthcare's earnings were boosted by the arrival of Covid, as it moved to provide tests and immunisations on top of its regular healthcare services. With Covid now mainly in the past, Covid revenues are significantly lower, and base fees have been reduced. Despite continued strong underlying demand for Sonic diagnostic health care, the share price of SHL is 32% below its $46.95 high. It appears comfortable trading in the low $30s and needing a new catalyst to reclaim ground lost over the past 12 months. Sonic Healthcare daily chart Source: TradingView The figures stated are as of February 6th, 2023. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation. Take your position on over 13,000 local and international shares via CFDs or share trading – and trade it all seamlessly from the one account. Learn more about share CFDs or shares trading with us, or open an account to get started today. -
The Walt Disney Co. share price looks to have reversed its downtrend ahead of its Q1 results release Source Bloomberg Shares The Walt Disney Company Bob Iger Bob Chapek ESPN+ Hulu Shaun Murison | Senior Market Analyst, Johannesburg | Publication date: Friday 03 February 2023 When is Disney’s Q1 earnings date? The Walt Disney Co., listed on the New York Stock Exchange (NYSE), is the largest media and broadcasting company in the world. The company is set to report its fiscal first quarter earnings for 2023 (Q1 2023) on Wednesday the 8th of February after US markets close. The Walt Disney Co. Q1 2023 earnings: What ‘the street’ expects from results? The upcoming results will mark the first quarter with Bob Iger back at the helm. Bob Iger had previously served as CEO of the group from 2005 to 2020. His return in the last fiscal quarter follows the immediate dismissal of his successor Bob Chapek and was upon the request of the Disney board. Box office sales are expected to support revenue growth for the group with the latest Avatar movie having grossed over $2bn. Subscription numbers for Disney+, Hulu and ESPN+ will again be in focus, determining the success of new packaged bundle offerings which amalgamate these services. The groups parks and recreation services had a phenomenal return to growth in 2022 (post lockdowns), and markets will be looking to see whether this momentum has been continued with higher ticket prices to support. Markets will also look to see the health of linear network television for the group, and hear further about restructuring initiatives pertaining. How to trade the Walt Disney Co. results? Refinitiv data on the Walt Disney Co. arrives at the following consensus estimates for the Q1 2023 results: Revenue of $23.359 for the quarter (+7% year on year) Earnings per share $0.79 (-25% year on year) Source Refinitiv A Refinitiv poll of 30 analysts maintain a long-term average rating of buy for the Walt Disney Co. (as of the 3rd of February 2023, with 7 of these analysts recommending a strong buy, 17 recommending a buy, 6 hold and 0 sell or strong sell recommendations on the stock. Source IG From a retail trader perspective (as of 3rd of February 2023), 97% of IG clients with open positions on the Walt Disney Co. expect the price to rise over the near term, while 3% of IG Clients with open positions expect the price to fall. Disney earnings: technical analysis Source IG The share price of Disney has recently broken above the 200-day simple moving average (200MA) (blue line). This suggests that the longer-term trend is no longer down. The 20MA (red line) has also recently crossed above the 50MA (green line) suggesting that the short to medium term trend is now up. The stochastic does however provide a conflicting signal as it trades in overbought territory. Our preference is to look for long entry on the stock into a pullback from overbought territory, with a longer-term upside resistance target of 126.35. However, should a pullback instead take the share price below resistance and the 200MA at around 101.30, our upward trend bias assumptions would need to be reassessed. In summary Q1 2023 results are expected to be released on the 8th of February after US markets close While revenue is likely to have increased against the prior year’s comparative period, earnings are expected to have declined Consensus broker rating suggest the Walt Disney Co. to be a long term buy Most IG clients with open positions expect the share price to rise in the near term The price trend for Disney appears up although overbought at current levels
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Early Morning Call: FTSE 100 opens lower, after setting new all-time high In Europe, indices opened lower, consolidating after a positive weekly performance. Jeremy Naylor | Writer, London | Publication date: Monday 06 February 2023 Equity market overview Equity markets were mixed this morning in the APAC region. The Nikkei outperformed as the yen lost ground against all major currencies. Hong Kong’s Hang Seng was the worst performer in the region, dragged down by tech stocks. On Friday, US indices ended the session lower following a strong non-farm payrolls (NFP) report that sent the US dollar higher. More than half a million jobs were created in January, when the market expected 185,000. The December number was also revised upwardly to 260,000, from a previous estimate of 223,000. And the unemployment rate fell to 3.4% from 3.5% the previous month. Economists anticipated a rise to 3.6%. In Europe, indices open lower, consolidating after a positive weekly performance. On Friday afternoon, the FTSE 100 set a fresh all-time high, and France’s CAC 40 traded above 7,200 points, for the first time since January 2022. In Germany, factory orders rose by 3.2% in December month-on-month (MoM), after a 5.3% decline the previous month, and beating market expectations of a 2% rise. At 10am, we await Eurozone retail sales for the month of December. Economists expect a 2.5% fall compared to November 2022, down 2.7% year-on-year (YoY). Earnings season We have now passed the peak of the US earnings season. The market is still awaiting a few big names over the next three weeks. As for this week Hertz Global Holdings is scheduled to report tomorrow, followed on Wednesday by Walt Disney and Uber Technologies, and on Thursday by Philip Morris International, PepsiCo, and Lyft. Walt Disney’s results, to be published on Wednesday after US market close, will mark the first quarter with Bob Iger back at the helm. On November 20, Iger was called back by the Disney board, following the immediate dismissal of Bob Chapek. Iger had previously served as CEO of the group from 2005 to 2020. Analysts expect earnings of 79 cents per share on revenue of $23.43 billion. Subscription numbers for Disney+, Hulu and ESPN+ will again be in focus. The group's parks and recreation services had a phenomenal return to growth in 2022, and markets will be looking to see whether the group managed to keep the momentum going. Uber Technologies, also set tot report on Wednesday, recorded a net loss of $1.2 billion in the third quareter (Q3) of 2022, $512 million of which was attributed to revaluations of Uber's equity investments. However, the company beat analysts' estimates for revenue, which grew by 72% year over year, and reported adjusted EBITA exceeded its guidance of $440 - $470 million. As for the fourth quarter, the market expects a loss per share of 18 cents, and revenue of $8.47bn. The market will also be closely looking for the number of monthly active users, the number of trips, and the number of customers who have subscribed to Uber One. Commodities Oil prices posted a second weekly decline in a row, accentuated on Friday by NFP data. Last week, The Baker Hughes total rig count fell by 12 to 759, at its lowest since the end of July 2022. The number of oil rigs in operation fell by 10 to 599. This is here for you to catch up but if you have any ideas on markets or events you want us to relay to the TV team we’re more than happy to.
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