4 ‘Cut-Price’ Shares: Lloyds Banking Group PLC, Next plc, easyJet plc And J Sainsbury plc

These 4 share prices have fallen in the last year: Lloyds Banking Group PLC (LON:LLOY) (LSE:LLOY.L), Next plc (LON:NXT) (LSE:NXT.L), easyJet plc (LON:EZJ) (LSE:EZJ.L) and J Sainsbury plc (LON:SBRY) (LSE:SBRY.L)

Lloyds Banking Group PLC
Lloyds Banking Group PLC

I haven’t found it all that difficult to find 4 share prices which are still down on their level from 1 year ago. That’s in spite of share prices generally being higher than this time last year.

The Lloyds Banking Group PLC (LON:LLOY) (LSE:LLOY.L) share price is 1.4% lower than a year ago. I’m not overly surprised by this because Brexit uncertainty has gradually built during the last year. While I think Brexit fears are possibly now lower than just after the referendum, Lloyds shares could still be affected in my opinion as talks commence. However, due to its improving financial strength and efficiency, I think the Lloyds share price could perform relatively well in future.

Next plc (LON:NXT) (LSE:NXT.L) shares have declined 42% in the last 12 months. As with Lloyds shares, Brexit fears have been a contributing factor in my opinion. However, I think UK retail was already in a difficult position relative to recent years before the referendum. I believe Next has investment appeal owing to its income prospects and its strong brand. Therefore, although gains may not be forthcoming in the short run, I think it could be a good long term performer compared to sector peers.

J Sainsbury plc (LON:SBRY) (LSE:SBRY.L) shares are 0.7% down on their level from a year ago. I’ve been surprised at the resilience showed by Argos, where LFL sales were positive in Sainsbury’s most recent update. This shows Argos (and Sainsbury’s) may have more resilience to consumer weakness than I had previously thought. I believe there are cross-selling opportunities and synergies to come from Sainsbury’s purchase of Argos, and I feel the company’s share price could perform relatively well in the long run.

easyJet plc (LON:EZJ) (LSE:EZJ.L) is a company which I think has long term investment appeal. I feel it could do well on a relative basis due to its budget business model and sound strategy. I think its share price fall of 32% in the last year is mostly due to external factors which I believe are unlikely to remain in place in the long run. Weak consumer demand and higher competition may not be features of the airline industry in the long run, so I think easyJet’s shares could have investment appeal.

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