ASX:JBH

JB Hi-Fi is rated a buy with the stop loss at $74.84

JB Hi-Fi is under Algo Engine buy conditions.

1H22 total sales fell 1.9% to $3.29bn but have increased 20% over a two-year period and net profit for the six months fell 9.4% to $288m.

JB Hi-Fi said it will return up to $250m of capital to shareholders via an off-market buyback,

JB Hi-Fi is under Algo Engine buy conditions and is a current holding in our ASX 100 model. The stock is up 126% since being added back in November 2017.

FY21 group sales rose 12% to $8.9 billion and profit jumped to $506 million, which was largely in line with consensus forecasts, however, the electronics retailer warned that the 2022 financial year has had a softer start.

JBH:ASX is under Algo Engine buy conditions. We see price support within the $38 – $45 level.

Watch the short-term indicators for a turn higher.

JB Hi-Fi is among the best-performing stocks within our ASX 100 model portfolio. The stock was added back on the 3rd of November 2017 after switching to Algo Engine buy conditions.

JB Hi-Fi delivered FY20 underlying NPAT of $332mn above the top end of the guidance range of $325 to $330 million.

The 2H20 dividend of $0.90 was above consensus. Overall, the result was ahead of expectations, however, near-term risks to discretionary spending are high.

JB Hi-Fi delivered 1H20 NPAT of $174m, which represents 9% growth vs the same time last year.

JB Hi-Fi issued FY20 NPAT guidance of $265 to $270 million, which implies 1.0% to 6% growth, slightly below market consensus.

JB Hi-Fi is under Algo Engine buy conditions and was added to the ASX 100 model in late 2017.

JBH was one of the top performers in March, rallying over 15%. Part of this strength can be attributed to short sellers buying back, or closing out their positions. This is reflected in the fall in data on “open shorts” in JBH.

Strong retail data supports JB Hi-Fi and we believe the share price represent good value over the medium-term .

JBH has gone ex dividend today for 46 cents, which represents a forward yield of 5%.

We see solid chart support in the $24.80 to $25.00 range.

JB-HI