TMICY, ROK and DNLMY made it to the Zacks Rank #1 (Strong Buy) momentum stocks list on June 16, 2025.
Shares in Dunelm Group PLC (LSE:DNLM) fell 4.4% on Monday after RBC Capital Markets downgraded the homewares retailer from ‘outperform' to ‘sector perform', warning that much of the good news may already be priced into the shares. The analysts praised Dunelm's solid track record, cash generation, and market positioning, but said the shares, up over 20% in the past three months, now look fairly valued.
Dunelm Group (DNLMY) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).
Here is how Dunelm Group (DNLMY) and Madison Square Garden Entertainment (MSGE) have performed compared to their sector so far this year.
Dunelm Group PLC's (LSE:DNLM) latest trading update has prompted Deutsche Bank to raise its full-year profit forecast and price target, after the homewares retailer delivered better-than-expected sales and an encouraging improvement in margins. Third-quarter revenue rose 6.3% to £462 million, beating Deutsche's estimate of £454 million and the market consensus of £448 million.
Shares in Dunelm Group PLC (LSE:DNLM) rose 5% on Thursday morning after the homewares retailer said it expects profits for the 2025 financial year to be in line with market expectations, despite ongoing consumer uncertainty. The homewares group reported a 6.3% rise in sales for the 13 weeks to 29 March, with growth across homewares and furniture categories.
Despite Dunelm's impressive market share gains and a strong Q2 performance, the company faces significant headwinds from increased labour costs that could compress margin growth. While DNLMY's current valuation metrics appear attractive, its high FPEG ratio of 2.6 compared to the sector median's 1.7 suggests limited earnings growth potential, making it a potential value trap. The retailer's expansion plans present compelling growth opportunities. But with only a CAGR of 4.6% through FY27, these developments may already fully reflect the stock's current valuation.
Shares in Dunelm Group PLC (LSE:DNLM) were 3% higher after an upgrade by RBC Capital Markets, which now rates the homewares retailer as "outperform". The investment bank cites Dunelm's ability to grow sales and gain market share despite a tough UK retail environment in as a key reason for the change.
Dunelm Group PLC fell on Thursday after news of stronger sales was overshadowed by concerns around growing costs for the homeware retailer. Sales climbed by 1.6% in the second quarter to £490 million, taking first-half revenue up 2.4% to £894 million, Dunelm said on Thursday.
Dunelm Group PLC (LSE:DNLM) is Deutsche Bank's top pick among the UK household retail market, which it says generally needs improved housing transactions, spending power and confidence. Retailer Dunelm gets an upgrade to buy due to an attractive margin profile, high return on capital and track record of cash returns.
Dunelm Group (DNLMY) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).
Here is how Dunelm Group (DNLMY) and Peloton (PTON) have performed compared to their sector so far this year.