<ul class="list-ic vertical"> 
 <li> <span>1</span> <a>OCDO stock has been in a bearish trend since breaking the trendline at the end of August this year.</a> </li> 
 <li> <span>2</span> <a>The company is making losses on the operational level which is causing the profitability ratios to be negative.</a> </li> 
 <li> <span>2</span> <a>The current stock price is making a swing for the trend reversal.</a> </li> 
</ul> 
<p>Involved in operating an online grocery supermarket, Ocado Group Plc (LON: OCDO) was leading the London Stock Exchange’s top 10 gainers on Tuesday. The OCDO stock price rose by 6.7%, leading the FTSE 100 index.</p> 
<h2 class="wp-block-heading" id="strong-what-is-the-financial-performance-of-ocdo-strong"><strong>What is the financial performance of OCDO?</strong></h2> 
<p>With a market cap of £4.5B, this mid-cap firm reported its yearly revenue as £2.5B in 2022; the company was profitable till the gross profit was reported as £629M. The company is bleeding its cash in the operations as the earnings before interest and taxes (EBIT) are negative after paying off the general expenses.&nbsp;</p> 
<p>Due to the negative net income, profitability ratios like return on equity and earnings per share (EPS) are also deficient. This fund-sucking situation has reduced the cash and equivalents on the balance sheet to a significant level. The debt-to-equity ratio is also high at 1.20, indicating that the firm may face problems with debt solvency.</p> 
<h3 class="wp-block-heading" id="strong-lack-of-results-strong"><strong>Lack of results</strong></h3> 
<p>When a firm is burying funds in operations, it is usually the decision made by the management to increase the sales output; however, in the case of Ocado, this decision of heavy reinvestments isn’t in much favor. Despite the heavy reinvestments from 2017, the firm can only generate a compound growth rate of 11%, far from the industry rate of 24.6% in the same period.&nbsp;</p> 
<h1 class="wp-block-heading" id="strong-technical-analysis-prediction-of-ocdo-stock-price-strong"><strong>Technical Analysis &amp; Prediction of OCDO Stock Price</strong></h1> 
<div class="wp-block-image"> 
 <figure class="aligncenter">
  <img decoding="async" loading="lazy" width="1600" height="763" src="https://www.thecoinrepublic.com/wp-content/uploads/2023/10/image-344.png" alt="Ocado Group Plc. (LON: OCDO) leads FTSE 100, surges up 6.7% on Tuesday&nbsp;" class="wp-image-175118" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2023/10/image-344.png 1600w, https://www.thecoinrepublic.com/wp-content/uploads/2023/10/image-344-300x143.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2023/10/image-344-1024x488.png 1024w, https://www.thecoinrepublic.com/wp-content/uploads/2023/10/image-344-768x366.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2023/10/image-344-1536x732.png 1536w, https://www.thecoinrepublic.com/wp-content/uploads/2023/10/image-344-750x358.png 750w, https://www.thecoinrepublic.com/wp-content/uploads/2023/10/image-344-1140x544.png 1140w" sizes="(max-width: 1600px) 100vw, 1600px">
  <figcaption class="wp-element-caption">
   Chart provided by<a href="https://in.tradingview.com/chart/1SBAxzHq/?symbol=LSE%3AOCDO"> TradingView </a>(Daily time frame)
  </figcaption>
 </figure>
</div> 
<p>The OCDO <a href="https://www.thecoinrepublic.com/2023/09/13/iag-stock-price-half-yearly-reports-overwhelm-the-investors/">stock price</a> is in a downtrend after the bears reclaimed the significant resistance level of £879 at the end of August.&nbsp; Currently, the OCDO stock price is trying to reverse the trend as the bulls are trying to reclaim the support level of £528.&nbsp;</p> 
<p>The relative strength index (RSI) is slightly in the oversold zone of 40 but will eventually rise with the stock price. The 50-day exponential moving average price is £688 while the 150-day average is £659.&nbsp;</p> 
<p>The price prediction for the current stock price has some good buying volumes. However, the bulls must sustain past £692 to reverse the bearish trend. If the bears can reclaim that supply zone, the price will move to the support level again.&nbsp;</p> 
<h4 class="wp-block-heading"><strong>Conclusion</strong></h4> 
<p>Ocado Group Plc (LON: OCDO) surged to a significant level on Tuesday. The company is making slow growth despite heavily reinvesting in its operations. The stock price came in a bearish trend after the bears reclaimed a significant resistance level. The current price is on the verge of making a trend reversal as the price prediction is bullish.</p> 
<h4 class="wp-block-heading"><strong>Technical Levels</strong></h4> 
<p>Support: £528, and £399</p> 
<p>Resistance: £692, and £879</p> 
<h5 class="wp-block-heading"><strong>Disclaimer</strong></h5> 
<p>The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks comes with a risk of financial loss.</p>

Ocado Group Plc. (LON: OCDO) leads FTSE 100, surges up 6.7% on Tuesday

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