Philip Salter
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EARNINGS get into full swing this week. Tomorrow sees retail giant Tesco reporting its prelims. Most retail stocks have had it hard recently, with profit warnings being issued left right and centre, but in the last couple of weeks buyers have been attracted back into these stocks, believing the weakness presents a buying opportunity. Capital Spreads quotes 405.6p-406.3p.

Burberry’s latest update, covering the third quarter to 31 December, posted underlying growth of well over 30 per cent. Its shares have held recently near all-time highs around £12, but is supported by a super strong trendline going back to January 2009. Any pullbacks to the trendline, currently around £11, should be used as a buying opportunity. Spread Co offers 1,169.1p-1,171.9p.

Home Retail, the company behind both Argos and Homebase, has full year results coming up this week. But given the sector as a whole continues to struggle, the outlook is far from upbeat. Last month’s earnings guidance was below analysts’ expectations and as the impacts of elevated inflation and increases in VAT take their toll, it’s difficult to see any quick recovery on the cards. However, the declines in the share price over the last 18 months could mean there is little left on the downside. Current IG Index price is 206.8p-207.6p.

SAB Miller will be worth keeping an eye on this week as it reports its fourth quarter trading update. It recently stated that it forecasts huge growth in Africa, which helped the shares surge around 10 per cent, to £22.25, at the end of March. Since then the shares have been consolidating in a possible continuation flag formation, which if it breaks out to the upside could see them rally as far as £24.50. Spread Co quotes 2,246.8p-2,252.2p.