Dixons Carphone Share Price Forecast July 2021 – Time to Buy DC?

Shares of technology products retailer Dixons Carphone( LSE: DC) are in the news after the company delivered better than expected annual profits. The company is restarting dividends on the back of a huge surge in online sales which offset lost revenues caused by store closures due to the pandemic. The company reported a 1% increase in full-year revenues which reached £10.3 billion. All of these have left investors wondering whether it’s the right time to pick up Dixons Carphone shares in July.

Dixons Carphone – Technical Analysis

If we take a look at the financial statement from Dixons Carphone, we will see a company with a market cap of £1.426 billion. The company’s UK electricals business boosted sales by 14%, reaching £4.9 billion. This was further helped by online sales which doubled to £3.4 million. Sales in its international division increased by 15% which offset the 55% decrease in revenues caused by store lockdowns and closures a year earlier. DC shares are currently valued at £130.1 t the time of writing, with a downtrend of -0.08%.

Oscillators for Dixons Carphone, such as Ultimate Oscillator (7, 14, 28)(46.8), Bull Bear Power(10.9), Williams Percent Range (14)(−33) and Stochastic RSI Fast (3, 3, 14, 14)(76.9) point towards neutral. Moving averages such as Hull Moving Average (9)(127.6), Volume Weighted Moving Average (20)(127.6), Simple Moving Average (200)(121.3) and Exponential Moving Average (200)(123.6) point towards buying.

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Recent Developments

Dixons Carphone is one of the few companies that have resiliently tackled the pandemic, even though they themselves admitted that it’s nowhere near their full potential.  It was forced to react instantly to the overnight change introduced by lockdowns. It shifted its mobile operations into its Curry PC World stores, after closing its Carphone Warehouse stores. As international travel came to an almost halt because of the pandemic, the company was also forced to shut down its Dixons Travel shops. Despite all of this, the company introduced ShopLive, an online shopping service providing customers with face to face advice and assistance while shopping from their staff.

Should You Buy DC Shares?

The main question investors should ask at this point is how fast Dixons Carphone can return to its pre-pandemic levels of growth now that lockdowns have started easing and things are becoming normal. However, there can be a potential decrease in consumer spending on tech after they splashed out the cash on devices last year. However, the market was surprised with Dixons Carphone’s amazing performance during the pandemic.  With the mobile turnaround on track in UK and Ireland, the shares look cheap at the moment and can be added to your watchlist.

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