UK stock alert

UK

CLOSING UPDATE: BT Group increases further 0.5%, led Fixed line telecommunications sector higher 22 May 2018 19:12 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).

BT Group, the largest fixed line telecommunications company by market capitalisation in the United Kingdom, has increased 1.6% to trade at GBX206.45 vs. the Fixed line telecommunications sector which strengthened 37.2 points (or 0.5%) to 7,688.4. Representing a weighting of about 29.5% of the sector, the stock accounted for 97.8% of today's gain. Trading volume was 1.4 times average at the end of the day. Compared with the FTSE 100 Index which rose 18.3 points (or 0.2%) in the day, this represented a relative price increase of 1.4%.

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

Undervaluation:

+ Dividend yield of 7.5% [2.4%]

+ Return on Equity 22.9% [16.6%]

+ Return on Assets 4.5% [2.7%]

+ Return on Capital Employed 10.1% [5.6%]

Bullish Signals:

+ Tobin's Q Ratio is 0.5. Compared with the rest of the market the stock is undervalued and ranks in the top quartile of stock by value of Q Ratio.

+ Net profit margin has averaged 10.9% in the last 3 years. This is better than the sector average of 7.4% and suggests a high margin of safety.

+ As per the Du Pont analysis, Return on Equity is high at 22.9%.

Note

Bearish Signals:

The negative 9.13 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

The 2.6% premium to 12-month low of GBX201.25 against the 31.6% discount to high of GBX301.87 suggests the stock continues to push for new lows.

In the United Kingdom market, the stock's relative price strength percentile is slipping at 17 for 6 months, 15 for 3 months and 4 for 1 month.

In the last three months the stock has hit a new 52-week low nine times, pointing to a significant downtrend.

The price decreased 0.2% in the last week and plummeted 15.3% in the last month.

TODAY'S ALERT

Morning Alert: BT Group increases 1.1%, leads Fixed line telecommunications sector higher

22 May 2018 10:42 BST

BT Group (L:BT.A) has increased 1.1% to trade at GBX205.35 vs. the Fixed line telecommunications sector which strengthened 23.6 points (or 0.3%) to 7,674.7. Representing a weighting of about 29.4% of the sector, the stock accounted for the gain. Trading volume was 71% of average so far today.

BT Group (L:BT.A; LON:BT.A; LN:BT.A)

ISIN: GB0030913577

PermID: 4295895409

Source: www.BuySellSignals.com