easyJet (Q3 statement 18 July)
easyJet goes into its third quarter (Q3) statement having reported excellent numbers for June, seeing 2.3% growth in passenger numbers and a load factor of over 95%. Consumer spending fears have not been reflected in its performance, and it continues to maintain a strong showing against rival Ryanair. At 12.5 times forward earnings, the shares trade around their longer-term average, although it should be noted that the dividend, at 2.5%, is well below its two-year average of 4.1%.
June saw easyJet shares record a new all-time high, breaching £18.00 for the first time. Since then, a pullback towards £15.60 provided a buying opportunity, with the shares bouncing back above £16. The next areas to watch are £17.69 and then £18.09. A close below £15.66 would open the way to rising trendline support around £15.10, and below this £14.42.