Financial Trading Blog
Stock of the day 11/12/2014 – Bellway PLC
With George Osborne announcing reforms to stamp duty charges that helps potential home-buyers save thousands, property developers like Bellway look set to reap the benefits as buying becomes a more attractive proposal.
This news come after a so-far successful year for the Newcastle-based developer, as the company grew on the markets from a 2014 low of 1333.5 to a yearly high of 1965.5 at the start of December, the company’s highest ever shares price. This rise has been consistent since the start of the year, as Bellway also managed to quickly recover from the index-wide slump on the FTSE in mid-October. This rally was aided by the announcement of a 34% growth in revenue to £1.4 billion in its October earnings release, alongside pre-tax profits up 75% to £246 million.
As Bellway prepares for its statement on Friday, analysts have largely been positive about the stock. Eleven anaylsts, including Citigroup and Goldman Sachs, have given the stock a ‘buy’ rating; whilst six have said ‘hold’, including Deustche Bank. This was joined by a report from Numis, where analysts said that: “we expect Bellway to report that whilst the housing market has moderated it is still selling more houses than last year, due to the growth in the number of outlets.”
With the property sector undergoing a recent rally due to Osborne’s Autumn Statement announcement, Bellway will be looking to capitalise on this, continuing its strong year and closing 2014 in style.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
