The Week Ahead: Wizz Air, Chemring, Pennon

TL;DR

Positive economic news with US driving recovery, value stocks gaining traction, airline and hospitality sectors facing challenges.

Transcript

hello i'm richard hunter head of markets and welcome to our look ahead for the week commencing the first of june in terms of this week it's been generally positive news despite inflationary fears still bubbling underneath the service there's no doubt that the us is starting to drive its own economic recovery and in turn potentially the global econo... Read More

Key Insights

• 🛀 US economy showing recovery with decreasing jobless claims and over 6% annualized growth.
• 🏦 Shift towards value stocks like banks and oils over growth stocks.
• ❓ Challenges for airline and hospitality sectors due to COVID-19 variants.
• ❓ FTSE 250 companies reporting updates next week.
• 😘 Wizz Air reporting increased passenger numbers but still low capacity.
• 🪈 Kemring's order book at 481 million pounds.
• 👨‍💼 Pennon's focus on household demand offsetting business activity decrease.

Questions & Answers

Q: How is the US economy performing as of the first week of June?

The US economy is showing signs of recovery with decreasing jobless claims and over 6% annualized growth, pointing towards a warming up of the economy.

Q: What sectors are seeing a shift towards value stocks over growth stocks?

Sectors like banks, oils, and miners in the FTSE 100 are experiencing a resurgence in value stocks at the expense of growth stocks.

Q: What challenges are the airline and hospitality sectors facing currently?

These sectors are struggling due to COVID-19 variants and travel restrictions, impacting airlines and hospitality businesses significantly.

Q: What can investors look out for in the upcoming corporate calendar next week?

Investors can keep an eye on companies like Wizz Air, Kemring, and Pennon for updates on passenger numbers, new contracts, and shareholder returns.

Summary & Key Takeaways

• US economy showing signs of recovery with jobless claims decreasing since March 2020.

• Value stocks like banks and oils gaining favor over growth stocks.

• Challenges for airline and hospitality sectors due to COVID-19 variants.