Ocado’s Profit Forecast Hiked in the Run Up to Christmas
Few businesses have fared as well throughout the pandemic as supermarkets.
As economic lockdowns swept across Europe, customers began hoarding supplies to see them through the coming weeks and months. As we have moved through the different levels of lockdown in the UK for the past 9 months one of the few constants has been supermarkets, which have not been forced to close their doors once.
Perhaps unsurprisingly, given the requirements for social distancing, the demand for online grocery shopping has surged this year. This surge has caused Ocado to revise its profit forecast, after revenue increased 35% in the three months up to 29 November 2020.
At the beginning of November, this year's profit was estimated at £60 million, the Ocado Group has now lifted this forecast to £70 million, double the £35 million recorded last year.
Depicted: Admiral Markets MetaTrader 5 - Ocado Group Plc Daily Chart. Date Range: October 10, 2019, to December 10, 2020. Date captured: December 10, 2020. Past performance is not necessarily an indication of future performance.
In the chart above we can see how well the Ocado Group's share price has fared this year, surging from 1,078.50 GBX on March 12, to a high of 2,902 GBX on September 9.
Despite this news, the share price fell by more than 5% this morning at the opening of the market. However, it is expected to recover throughout the day.
Depicted: Admiral Markets MetaTrader 5 - Ocado Group Plc M30 Chart. Date Range: December 1, 2020, to December 10, 2020. Date captured: December 10, 2020. Past performance is not necessarily an indication of future performance.
The group is expected to open three new warehouses in 2021, which they say will increase their capacity by 40%.
However, the future growth of the company will depend on how consumer behaviour will change once we see a gradual return to normality. It is very possible that the increased online shopping habits formed by the pandemic are here to stay.
How to Trade Ocado Group Plc CFDs with Admiral Markets
- Open an account with Admiral Markets
- Download the MetaTrader 5 trading platform for free and open it
- Head to the 'Market Watch' window on the left hand side of the screen (if it is not already there press Control + M)
- Scroll to the bottom of the 'Market Watch' window and search for the Ocado Group in the dialogue box, as shown below:
Depicted: Admiral Markets MetaTrader 5 - Market Watch
- Select the symbol and hit enter to make it appear in 'Market Watch'. Then right click on the symbol and select 'Chart Window'
- From here you can enter the market by selecting 'New Order' at the top of the screen
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