Become a Member
  • Track your favourite stocks
  • Create & monitor portfolios
  • Daily portfolio value
Sign Up

Right Move Could Be Set to Fall Out of FTSE 100

Fri, 14th Sep 2018

The next FTSE 100 reshuffle is due to happen shortly, and it appears that Rightmove could be one of the next companies to drop out of the UK’s leading index. The reassessment will evaluate which companies should be in the top flight, based on their market capitalization at the close of trading on the deadline.

Mortgage Strategy, a financial services publication, notes that Rightmove has seen its share price fall recently, and that long-term uncertainty over the housing market, and the wider economy, is not helping the company.

The portal is still a strong contender in its industry, and demotion to the FTSE 250 would not be a warning sign for the company’s future. There are many other strong companies that are also contenders for demotion, including Royal Mail, Direct Line, and Marks & Spencer. All companies that are facing challenges as consumer shopping habits change.

Since floating in 2006, Right Move has enjoyed rising revenues and profits, and it looks set to continue to grow. It has strong pricing power and good recurring revenues. However, traditional agents margins are coming under pressure, and there has been a growth of rival services, which means that over the next few years the landscape could change. The property market is one area under which the impact of Brexit is hard to predict, also, so it is difficult to predict what will happen with housebuilders and letting agents alike in the FTSE 100 over the short to medium term.

FTSE 100 Latest
Value6,809.55
Change31.44