Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Next share price: what to expect from half-year results

After an impressive rally in the first half of the year, Next has recovered from a mid-year dip to push to its highest level since 2015.

Next half-year results: what does the City expect?

Next is expected to report first-half (H1) pre-tax profit of £318 million, down from £411.8 million a year earlier. Meanwhile, revenue is forecast to drop to £2.02 billion from £2.26 billion last year. The retailer has seen a continued fall in sales in its bricks-and-mortar division, putting pressure on many stores which have fewer than five years of their leases remaining. Growth continues to come from the online division, with new Marketplace and Label brands widening the base of shoppers on which Next can draw.

Overseas expansion has become a key growth driver for Next, which should help offset a sustained store closure programme in the UK, which may become unavoidable in coming years if revenue continues to decline at its physical stores.

At 13 times earnings, Next is valued in line with its five-year average, having seen the valuation drop to a multi-year low at the end of 2018. However, it remains far cheaper on a price-to-earnings (PE) basis than in the heady years of 2012-2015, when the share price rocketed to £72.

Next share price: technical analysis

Next has shaken off its period of weakness from 2015 until 2017 and has pushed steadily higher, moving through the July 2018 highs above £60.00.

This clears a path to the highs last seen in the H2 of 2015, when the shares pushed on to £72.00. The shares have endured a volatile time, dropping to a low of £38.00 in December 2018, when they traded at just 8.9 times earnings. This ‘bargain basement’ opportunity then saw an impressive rally, which endured a pause in June with a drop towards £52.80, before a continuation of the gains took the price to a new high.

July and August saw the price gap higher, but then it dropped back to £56.20, creating a fresh buying opportunity. In the longer term, £63.65 and then £72.00 are upside targets, while a move below £52.80 is likely to dent the bullish these in the medium term.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.