InvestingPro breakdown: 2 retailers with strong upside potential
Oliver Gray | Jun 05, 2023 15:26
Investing.com - The global economy continues to struggle with persistently high inflation pressures and expectations of further hikes from central bank policymakers. Despite an AI-fueled tech stock melt-up and resilient labor markets, there are growing predictions for a recession in H2 2023 as tightening financial conditions drive slowing growth.
Meanwhile, the ongoing conflict in Ukraine continues to significantly impact global macroeconomic and geopolitical environments, including increased volatility in capital and commodity markets, rapid changes to regulatory conditions around the globe including the use of sanctions, operational challenges for multinational corporations, inflationary pressures, and an increased risk of cybersecurity incidents.
With this macroeconomic backdrop in mind, here are 2 companies with the potential to outperform current market conditions according to
JB Hi-Fi Ltd (ASX:JBH)/h2
What Does the Company Do?
JB Hi-Fi Limited is a specialty retailer of home consumer products, focusing on consumer electronics, software, whitegoods, and appliances. With over 300 stores across Australia and New Zealand, the company offers a wide range of products at competitive prices, supported by knowledgeable staff. They operate various store types, including an online presence, and also provide informational technology and consulting services.
Weekly price action for JB Hi-Fi Ltd (ASX:JBH) shows that the company is trading just above yearly support levels and is vulnerable to further breakdown in the event of a global downturn:
Source: Find All the Info you Need on InvestingPro!
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