Ashtead is trading at 916, up 0.4% on the day as traders look ahead to its annual results on Tuesday. The stock gapped higher in March when the firm revealed a 54% increase and third-quarter profits, the results exceeded analysts’ estimates and its full-year profit guidance was raised. Ashtead hires out heavy equipment such as diggers; the turnaround in the construction sector in both the UK and US has boosted company profits in the past few years.
Ashtead is the second largest company of its kind in the US. Its market share currently stand at 6% and the London-based firm hopes to double that in the next few years. US business accounts for 85% of the group’s revenue stream.
The stock is receiving support at the 100-day moving average of 875, with 800 the next support level down. If the company beats the already raised profit expectations, the stock could target 990.