The Ocado share price has not had a great year so far. It has been among the 10 worst-performing stocks in the FTSE 100 index this year. The OCDO stock has slumped more than 24% this year and more than 12% since the start of September. However, the stock is more than 82% above its pre-pandemic levels in February 2020. Its total market capitalization currently stands at £13.91 billion.
Ocado Fundamental Analysis
Ocado Group Plc is in the spotlight after recording its largest drop in sales. The British online retailer has an e-commerce joint venture with Marks & Spencer, one of the leading retailers in the United Kingdom. A warehouse fire in July cost the Ocado’s joint venture about $50 million in lost revenues.
At the start of the year, the Ocado share price was almost back to back with Tesco’s, the largest grocery retailer in the UK. However, while the company has made great strides at boosting capacity, it still has a long way to recovery.
The company’s Q3 revenue for the retail unit dipped 11%, compared to the 54% jump in the same quarter last year. However, custom orders have continued to rise as orders per week jump 22%. Revenues for the third quarter came in at £517.5 million, which was slightly lower compared to the £1.3 billion recorded in H1.
Ocado stated that over the next few years, it expects to record strong revenue growth. However, nationwide truck-driver shortage and lower demand as workers returned to the office, remains a big challenge.
Ocado Share Price Stance
The Ocado share price has been under intense pressure in September. The stock has been hovering below the 2000p level for the past week. At the time of writing, it was trading lower at 1849p.
On the daily chart, it is moving below the 50, 100, and 200-day moving averages, which is a bearish signal. Therefore, the stock’s outlook remains uncertain as the bulls target the crucial level at 2000p.