UK stock alert

UK

CLOSING UPDATE: Reckitt Benckiser keeps rising: up 7.0% in 6 days 15 June 2018 19:19 BST

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).

Reckitt Benckiser, the largest household goods & home construction company by market capitalisation in the United Kingdom, extended its gains on Friday, rising an additional GBX10.0 (or 0.2%) to trade at GBX6,160.0. Trading volume was 1.7 times average at the end of the day. The shares have risen GBX401.0 (or 7.0%) over the past six trading days vs. the FTSE 100 Index which has fallen 0.9% in the same period.

Technical indicators complementing today's significant uptrend:

+ The positive 93.71 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

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

Undervaluation:

+ Price/Earnings of 7.0 [8.4]

Other Bullish Signals include:

+ Interest cover is less leveraged at 9.4 times.

+ Tobin's Q Ratio is 1.2. Compared with the rest of the market the stock is undervalued.

+ Net profit margin has averaged 22.5% in the last 3 years. This is considered superior and suggests a high margin of safety.

+ As per the Du Pont analysis, Return on Equity is high at 25.1%. Also, this has improved from 20.6% last year.

Note

Reckitt Benckiser today is at a discount of 21.5% to the 12-month high of GBX7,850.88 on 20 Jun, 2017. It is at a premium of 17.2% to the 12-month low of GBX5,255.0 on 20 Apr, 2018.

Bearish Signals:

The stock has underperformed 73% of the United Kingdom market over the past 6 months.

In the last three months the stock has hit a new 52-week low twice.

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

Overvaluation:

Price/Earnings/Growth of 0.27 [0.1]

Price/Sales of 3.8 [2.3]

Dividend yield of 2.7% [5.8%]

Return on Equity 25.1% [29.6%]

Return on Assets 9.2% [14.1%]

Return on Capital Employed 9.2% [13.8%]

TODAY'S ALERT

Afternoon Alert: Reckitt Benckiser keeps rising: up 7.0% in 6 days

15 June 2018 15:54 BST

Reckitt Benckiser Group PLC (L:RB.) extended its gains on Friday, rising an additional GBX14.0 (or 0.2%) to trade at GBX6,164.0. Trading volume was 1.1 times average so far today. The shares have risen GBX405.0 (or 7.0%) over the past six trading days vs. the FTSE 100 Index which has fallen 0.3% in the same period.

RECENT ALERTS

CLOSING UPDATE: Reckitt Benckiser lifts 2.3% on robust volume

14 June 2018 19:09 BST

Reckitt Benckiser, the largest household goods & home construction company by market capitalisation in the United Kingdom, traded on heavy volume of 1.5 times average today while the price lifted GBX141.0 (or 2.3%) to trade at GBX6,150.0. Compared with the FTSE 100 Index which rose 62.1 points (or 0.8%) in the day, this represented a relative price increase of 1.5%.

Afternoon Alert: Reckitt Benckiser keeps rising: up 5.3% in 5 days

14 June 2018 15:50 BST

Reckitt Benckiser Group PLC (L:RB.) extended its gains on Thursday, rising an additional GBX55.0 (or 0.9%) to trade at GBX6,064.0. Trading volume was 1.6 times average so far today. The shares have risen GBX305.0 (or 5.3%) over the past five trading days vs. the FTSE 100 Index which has risen 0.5% in the same period.

Reckitt Benckiser Group PLC (L:RB.; LON:RB.; LN:RB.)

ISIN: GB00B24CGK77

PermID: 4295894756

Source: www.BuySellSignals.com