Insights

Why is the Temple & Webster share price flaming 16% higher?

Inflation data doesn’t appear to have rocked the share.
The post Why is the Temple & Webster share price flaming 16% higher? appeared first on The Motley Fool Australia. –

The Temple & Webster Group Ltd (ASX: TPW) share price is surging into the green in afternoon trade on Thursday.

At the time of writing, the share is swapping hands at $4.65 apiece, more than 16% higher from the open on no news.

In broad market moves, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is flat on the day.

What’s up with the Temple & Webster share price?

Whilst the company hasn’t released anything sensitive today, the latest Australian inflation data might have something to do with things.

Data released from the ABS shows the aggregate level of prices in the consumer price index (CPI) increased 6.1% year on year last quarter, led by segments such as automotive fuels and furniture.

The gain also signifies a 100bps increase from the previous quarter’s CPI print of 5.1%.

Retail shares have flourished today following the release of the data. Temple & Webster had gained more than 5% yesterday too, and the bid has continued into this afternoon.

The thinking is that consumer cyclicals, including retail, could benefit in the near term from the pricing advantages given there’s no cost of production for the end-product in these sectors.

We see evidence of this in large retailers’ earnings for the March quarter of 2022.

Luxury retailer [Louis Vuitton] LVMH Moet Hennessy Louis Vuitton SE (SEEPA: MC) reported earnings overnight with a better than expected result from top to bottom.

LVMH’s sales rose 19% year on year to 18.73 billion euros in the three months to June 30, beating analyst expectations for 17.13 billion euros, whereas profit rose 34% to 10.2 billion euros.

Consumer cyclicals are “riding a post-pandemic boom that has so far shown no sign of slowing despite various challenges to the global economy such as rising inflation, logistical blockages and the war in Ukraine,” The Wall St Journal reports.

Investors seem to have agreed with this for the Temple & Webster share price.

Trading volume is nearly 100% that of its 4-week average at around 560,000 shares, bringing the gain to 31% for the week.

Despite this, the stock is still down 62% for the year, which may or may not have some influence on buying activity considering the cheap absolute prices.

The post Why is the Temple & Webster share price flaming 16% higher? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Temple & Webster Group Ltd right now?

Before you consider Temple & Webster Group Ltd, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Temple & Webster Group Ltd wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of July 7 2022

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Take a seat: What inflation data might mean for ASX retail shares
Why I think these 2 ASX growth shares could keep marching upwards
3 ASX All Ordinaries shares going great guns on Thursday
Why is the Temple and Webster share price up 7% today?
Temple & Webster share price jumps 11% after hitting recent lows

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Rebate Rewards

Level 2 Rebate

Deposit $2,000 and get $200 Rebate
$ 200 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $2,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $200 Rebate
Popular

Level 1 Rebate

Deposit $1,000 and get $100 Rebate
$ 100 Rebate
  • 3 Simple Steps
  • 1. Register Using The Link Below (Promo-Code: WEBREBATE)
  • 2. Deposit $1,000 and place one trade at any non-Austalian market within 30 calendar days
  • 3. Receive Your $100 Rebate

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here To Get Started
EASY QUALIFICATION & LOW ENTRY
NEW CLIENT REBATE OFFER
EARN UP TO $200 CASH REBATE
Act Fast - Promotion Ends In
Click Here For More Info