ASOS shows an uptrend channel since end May 2013 that has been reaffirmed four sessions ago.
The company has a good financial situation. In fact, sales have increased by 39% on last year and are expected to rise by 32% this year, an improvement in net income by 30% over the last year for a net margin of 5.24%. All this, joined to a mastered debts and production costs levels leads to a solid financial structure.
Moreover, the group counts with quite positive revisions on EPS and dividends.
Currently near the 50-day moving average level, the stock has a bullish overall direction since several sessions. This positive path should lead the share price to jump over the GBp 6385 resistance, which represents the buying signal for investors.
Having risen over the GBp 6385, investors could take a long position on ASOS, this in order to reach the target price at GBp 7008. The stop loss is fixed at GBp 6145. It is important to remark that Interim 2014 earnings are going to be released on March 18.
ASOS Plc is a United Kingdom-based global fashion retailer. The Companyâs segments include the United Kingdom, Europe, the United States and the Rest of the World. It has approximately 17 own brands, including ASOS Design, ASOS Edition, ASOS 4505, ASOS Luxe, As You, Collusion, Topshop Topman, Miss Selfridge, HIIT, Dark Future, Unrvlld Spply, Crooked Tongues, Day Social and Actual. The Company sells products across the world and has Websites targeting countries that include the United Kingdom, the United States, Australia, France, Germany, Spain, Italy, Sweden, the Netherlands, Denmark and Poland. The Companyâs warehouse network includes four fulfillment centers and five returns centers, enabling them to provide next day delivery to the majority of its global customer base. Its Barnsley and Lichfield warehouses service both the United Kingdom and Rest of World territories, with Eurohub servicing Europe and Atlanta servicing North America.