Future PLC

Future PLC magazines on coffee table

Future PLC, together with its subsidiaries, publishes content for technology, games, TV and entertainment, women’s lifestyle, real life, music, creative and photography, sports, home interest, and B2B sectors primarily in the United States and the United Kingdom. It operates through Media and Magazine segments. The Media segment provides e-commerce, digital advertising, events, lead generation, newsletters and CRM, and digital licensing services. The Magazine segment creates specialist magazines and bookazines in print and digital formats; and offers print licensing services. The company also provides endorsement licensing, comparison shopping, and video content production services, as well as various sales and distribution services to third party publishers. Future PLC was founded in 1985 and is based in Bath, the United Kingdom.

VectorVest UK Chart of FUTR.L
Click or tap image to enlarge.

The chart of FUTR.L shows price action in candlestick format over the past year.

In the bottom window below the price, the blue study shows that forecast Earnings per share (EPS) is rising and this is the engine that’s been driving the share price upwards. Over the last year forecast EPS has nearly doubled from approximately 77p to 135p.

On VectorVest, the Relative Safety (known as RS) of the earnings stream is ranked as very good. The share pays a small dividend of which is well covered by an earnings yield of many times the yield. The dividend safety and dividend growth are rated as excellent on VectorVest.

The metric measuring long-term share price appreciation potential in relation to a AAA rated corporate bond (known as RV) is rated as excellent by VectorVest. FUTR.L has a forecast Earnings Growth Rate (GRT) of 37% which VectorVest considers to be excellent.

The overall rating of FUTR.L using the VectorVest Master Indicator VST (Value, Safety and Trend) is rated as very good.

Technically, FUTR.L is trending strongly as measured by the proprietary VectorVest Comfort Index. The Comfort Index (CI) is an indicator which reflects a stocks ability to resist severe and or lengthy price declines. The Comfort Index is unique in investment research and a secret weapon. VectorVest rates the CI of FUTR.L at 1.61 which is excellent on a scale measured between 0 and 2.

From March 2021 to September 2021, FUTR.L trended strongly upwards as can easily be seen on the above chart. Since September 2021, the share has consolidated and traded sideways to down within a pattern known by chartists as a “flag” continuation pattern. A breakout of this “flag” pattern would be very positive for the share. Of note, FUTR.L pulled back in price to the last resistance level as can be seen by the blue horizontal line on the chart. This accumulation where previous resistance has now become support is a characteristic of a bull market.

Technical analysts will note the bullish reverse divergence displayed by the price of FUTR.L and the MACD indicator. This divergence known by some as a “slingshot” adds to the probability that a resumption of the upward trend is near.

FUTR.L is currently on a Hold recommendation on VectorVest.

In summary, FUTR.L has excellent growth and safety of earnings fundamentals. The technical picture is highly supportive of a resumption of the upward trend in the share.

Strategy

FUTR.L should be accumulated when VectorVest prints a Buy recommendation on the share.

banner

Leave a Reply

Your email address will not be published. Required fields are marked *

Home
×
Menu