The best time to buy M&S shares is when the whole market is very weak. One example was last October when macro concerns punished many stocks regardless of their fundamentals.
M&S has had two major bear markets since 2007. The first was back in 2008 when prices dropped from 600p to 200p. The other was 2015-2020, where the stock suffered a 80 percent drop from its 550p high. After each prolonged decline prices rose by 100 percent from the lows.
M&S just had a 12-month-long 60% decline from 250p. A rebound is now underway. A consolidation is not to be ruled out.
For long-term investors, a drop into double-digit levels would be interesting and may be worth buying into – as that puts MKS in a ‘deep value’ territory.
Jackson is a core part of the editorial team at GoodMoneyGuide.com.
With over 15 years industry experience as a financial analyst, he brings a wealth of knowledge and expertise to our content and readers.
Previously Jackson was the director of Stockcube Research as Head of Investors Intelligence. This pivotal role involved providing market timing advice and research to some of the world’s largest institutions and hedge funds.
Jackson brings a huge amount of expertise in areas as diverse as global macroeconomic investment strategy, statistical backtesting, asset allocation, and cross-asset research.
Jackson has a PhD in Finance from Durham University and has authored nearly 200 articles for GoodMoneyGuide.com.
