The Morrisons share price will be in the spotlight this week as the company publishes its quarterly results. The stock ended last week at 179p, which was 4% higher than its year-to-date low. It has lagged other British supermarket stocks like Tesco and Sainsbury in the past 12 months.
Morrisons shares vs Tesco and Sainsbury
The background: Morrison’s is a major UK supermarket chain with almost 500 stores in the UK. It competes with other retailers like Tesco, Sainsbury, Aldi, and Asda, among others. These companies have done relatively well during the pandemic.
Because of government support, the unemployment rate in the country has not been as bad as in other countries. Also, the recent Brexit deal helped relieve pressure on retailers. However, there are concerns about whether this growth will continue as the economy reopens.
Morrisons earnings: Morrissons share price will be in the spotlight next week as investors focus on its quarterly earnings that will come out on Tuesday. In general, analysts expect some solid results for the quarter. Stil, analysts will be focusing on the company’s costs and e-commerce sales.
In the previous FY earnings, the company said that its same-store sales surged by 8.6% while total revenue rose by 0.4% to 17.6 billion. It also recommended a dividend of 5.11 pences.
Morrisons share price analysis
The four-hour chart shows that the Morrison share price has been crawling back recently. The shares have risen by more than 4% this month. Along the way, it has moved above the 25-day and 15-day exponential moving averages while the Relative Strength Index (RSI) has moved close to the overbought level.
From a distance, the stock seems to be forming a head and shoulders pattern and a small rising wedge pattern. Therefore, I believe that the shares will have a pullback next week after earnings. If this happens, the next key level to watch will be the support at 172p.