Business

The stock price of Oxford Instruments was correct.This is what i do now

The last time I wrote about a nanotechnology company Oxford Instruments (LSE: OXIG) A few months ago, we saw a 15% rise in stock prices in one day. I was worried that it could rise further in the short term, especially as “restarted” stocks rose. Nevertheless, my overall conclusion was that it would rise over time.

Is FTSE 250 As I write, inventories have increased by about 6% since late March to 2,130p. This may not look like a big jump, but I believe it is a confirmation that Oxford Instruments’ stock price is heading in the right direction. And my previous call to it was correct.

Solid results boost Oxford Instruments share price

Its latest results also support this idea. By March 31, full-year statutory operating profit was £ 53m, up 33%. According to the adjusted figures, the increase in profits is small, which basically reflects how the company views its performance. However, the increase was still good at 13.3%.

Yields are negligible, but dividends have also begun.

The company’s sales were almost unchanged from the previous year, up only 0.3%.But in a year “Critical covid confusion” As Oxford Instruments says, I don’t read much about sluggish earnings.

Promising outlook

Instead, we’re looking more closely at the numbers for that future outlook. This includes orderbooks, which have increased by 13% over the past year due to their strength in the North American and Asian markets. This increase in order books is encouraging as it guarantees future profits.

Geographical demand was also positive to ensure that Oxford Instruments was not vulnerable to the ups and downs of individual markets. This is especially positive at the moment when the Covid epidemic can hinder business in certain regions.

High stock prices don’t have to be deterrent

The company’s high stock price could put off investors. It’s shy to the highest ever in recent years. But that also applies to many other strains. Expectations for a recovery in investor bullishness and improved corporate performance after the pandemic boosted stock prices.

I think some of this optimism could decline in some stocks if the company doesn’t perform well. But it’s doubtful if that’s the case for Oxford Instruments. In recent years it has been a financially stable company The outlook looks good Too.

Its stock price is also rising over time. Over the past year alone, it has increased by more than 50%. Over the last five years, it has more than tripled. If there are no unexpected challenges, I think we can continue to do so.

I Keep my point of view Oxford Instruments shares may rise. It’s still a good long-term purchase for me.


Manika Premusin There are no positions in any of the listed shares. The Motley Fool UK does not have a position in any of the listed shares. The views expressed about the companies in this article are those of the author and may differ from the official recommendations made by subscription services such as Share Advisor, Hidden Winners, and Pro. Here at The Motley Fool, by exploring different insights, Better investors than us.



The stock price of Oxford Instruments was correct.This is what i do now

Source link The stock price of Oxford Instruments was correct.This is what i do now

Related Articles

Back to top button