The FTSE 100 Index rally stalled this week, even as its US counterparts soared to a record high amid falling fears of the ongoing Iran war. It was trading at £10,600, up sharply from the year-to-date low of £9,690.
Similarly, the FTSE 250 Index jumped to £22,920, its highest point since February. This article explores some of the top FTSE 250 and FTSE 100 shares to watch next week.
London Stock Exchange (LSEG) is the top FTSE 100 stock to watch
The London Stock Exchange stock has done well in the past few months, which is in line with our prediction. The prediction recommended buying the dip as the stock dropped to 6,618p in February as concerns that AI will disrupt the industry rose. It has now jumped to 9,600p.
In our report, we noted that the company will not be impacted negatively by AI. Instead, AI would make it better, especially by boosting its efficiency. We also noted that the fear among investors was uncalled for.
LSEG stock will be in the spotlight next week as it publishes its financial results, which will provide more information about its growth trajectory and the cost management strategy as it faces activist pressure.
The stock has formed an inverted head-and-shoulders pattern, pointing to a continued rally in the coming months. If this happens, it may jump to the next key target at 10,000p.
LSEG share price chart | Source: TradingView
Sainsbury’s to publish its earnings
Sainsbury’s, a top player in the retail industry, has moved sideways in the past few months, remaining inside the key support and resistance levels at 321p and 360p. It remains 26% above the lowest level last year.
Sainsbury stock will be in the spotlight as it publishes its numbers next week. These numbers will likely mirror those announced by Tesco, which said that its business continued doing well last year.
The company said that its sales grew by 4.3% last year as its operating profit remained flat. It boosted its dividend and buybacks, but warned that the Iran war was clouding its outlook.
Sainsbury’s recent statement showed that its profit to be over £1 billion, but lower than its previous guidance. Its free cash flow is expected to be over £550 million, higher than its previous guidance of £500 million.
Sainsbury has made some major changes in the past few months. It sold its banking business to NatWest and its ATM business to NoteMachine, and reached a deal with Allianz to offer car and auto insurance.
ASOS to release its earnings as the stock drops
Meanwhile, ASOS will be the top FTSE 250 stock to watch next week as it releases its numbers.
Its stock has dropped by over 35% from its highest point this year as the Iran war brought substantial challenges, especially its soaring costs.
The most recent trading statement showed that its gross merchandise value dropped by over 9% YoY. Its GMV increased sequentially, helped by its UK, US, German, and French businesses.
ASOS also improves its gross margin by 330 basis points, while its adjusted EBITDA rose by 50% because of lower return rate and cost benefits.
ASOS is now prioritizing outerwear and improving the shopping experience. However, chances are that the Iran war will have a negative impact on its business as customers prioritize other needs.
The other top FTSE 100 and FTSE 250 shares to watch will be Associated British Foods, Hikma Pharmaceuticals, and AJ Bell.
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