A Tale of Two Retail Stocks

THE WEEK: Morningstar columnist Rodney Hobson looks at one retailer whose shares have jumped nearly 50% - and another whose fortunes have halved

Rodney Hobson 15 September, 2017 | 3:44PM

Primark

Something rather curious happened at Associated British Foods (ABF) this week. The shares fell 5% after an update that I read three times looking in vain for nasties.

Now I’m not a great fan of the company, which has seen too many ups and downs for my liking. I really don’t see how the Primark clothing chain fits in with the food; the food side is too prone to the pressures of consumer price resistance; and Primark, although once again powering ahead, had an uneasy setback last year.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Ashtead Group PLC2,488.00 GBX7.47
Associated British Foods PLC1,824.00 GBX8.60
Dunelm Group PLC1,033.00 GBX8.97

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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