Bloomsbury share price has had a strong performance in 2022. The stock has jumped by about 30% as the publishing industry remains resilient. As a result, it has outperformed the FTSE 100 and FTSE 250 indices, which have been in the red. So, is BMW a good stock to invest in?
Bloomsbury growth continues
Bloomsbury is a leading publisher that is best known for its Harry Potter books. It specialises in books in several journals, including academic, children’s, education, fiction, and non-fiction. Some of its best-known authors are Sara Mass, Kamilla Shamsic, JK Rowling, and George Saunders among others.
Bloomsbury has published several notable books this year. Some of its best-performing books are Illuminations by Alan Moore, Liberation Day by George Saunders, and What Writers Read.
Bloomsbury share price has done well this year because of its strong performance. First-half results showed that the company’s revenue rose by 22% to £122.9 million even as inflation rose. The company’s profit rose by 23% to over £15.9 million. In a statement, the firm attributed its success to the fact that books were an affordable treat despite the soaring cost of doing business.
Bloomsbury’s Digital Resources (BDR) project saw its revenue grow by 69% while the non-consumer division’s revenue rose by 24%. The firm has a strong balance sheet, with net cash of £41.5 million. It expects that its full-year revenue will be £242.6 million.
Bloomsbury share price forecast
The daily chart shows that the BMY share price has done well in the past few months. The stock managed to cross the important resistance level at 427p in October after the company published strong financial results. It has now retested the support level and it remains above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has dropped slightly below the overbought level.
Therefore, the stock will likely continue rising although potential gains will be significantly limited. If this happens, it could retest the important resistance level at 465p. A drop below the key support at 400 will invalidate the bullish view.