UK stock alert

UK

CLOSING UPDATE: British American Tobacco lifts 2.3%, led market higher 19 January 2018 18:07 GMT

NEWS BITES - EUROPE

This is an end of day Alert, produced after today's United Kingdom market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

British American Tobacco, the largest tobacco company by market capitalisation in the United Kingdom, has lifted 2.3% to trade at GBX5,062.0 vs. the FTSE 100 Index which strengthened 29.8 points (or 0.4%) to 7,730.8. Representing a weighting of about 4.1% of the index, the stock accounted for 24.0% of today's gain. Trading volume was 1.1 times average at the end of the day. Compared with the FTSE 100 Index which rose 29.8 points (or 0.4%) in the day, this represented a relative price increase of 1.9%.

Technical indicators complementing today's significant uptrend:

+ The positive 28.93 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ In the last three months the stock has hit a new 52-week high once.

+ The price increased 1.9% in the last week and lifted 2.2% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Price/Earnings of 20.3 [23.9]

+ Dividend yield of 4.3% [3.8%]

+ Return on Assets 12.2% [8.6%]

+ Return on Capital Employed 24.8% [21.1%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 10.2 times.

+ Net profit margin has averaged 30.5% in the last 3 years. This is considered superior and suggests a high margin of safety.

Note

Bearish Signals:

Tobin's Q Ratio is 2.9. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Earnings/Growth of 3.67 [1.0]

Price/Sales of 6.3 [2.9]

Year-on-Year Earnings Growth of 8.2% [23.1%]

TODAY'S ALERT

Morning Alert: British American Tobacco decreases 0.2%

19 January 2018 10:24 GMT

British American Tobacco PLC (L:BATS) traded on volume of 0.8 times average so far today while the price decreased GBX8.50 (or 0.2%) to trade at GBX4,941.50.

RECENT ALERTS

CLOSING UPDATE: British American Tobacco decreases 1.1%, led market lower

18 January 2018 18:07 GMT

British American Tobacco, the largest tobacco company by market capitalisation in the United Kingdom, has decreased 1.1% to trade at GBX4,950.0 vs. the FTSE 100 Index which weakened 24.5 points (or 0.3%) to 7,701.0. Representing a weighting of about 4.1% of the index, the stock accounted for 13.4% of today's loss. Trading volume was 1.1 times average at the end of the day. Compared with the FTSE 100 Index which fell 24.5 points (or 0.3%) in the day, this represented a relative price change of -0.7%.

Morning Alert: British American Tobacco decreases 0.3%

18 January 2018 10:23 GMT

British American Tobacco PLC (L:BATS) traded on volume of 1.0 times average so far today while the price decreased GBX17.0 (or 0.3%) to trade at GBX4,986.0.

British American Tobacco PLC (L:BATS; LON:BATS; LN:BATS)

ISIN: GB0002875804

PermID: 4295894777

Source: www.BuySellSignals.com