This week is expected to be another busy one for shares and share prices. Investors are set to see the release of updates from a number of stocks such as AstraZeneca plc (LON:AZN) (LSE:AZN.L), Royal Dutch Shell Plc (LON:RDSB) (LSE:RDSB.L), Ocado Group PLC (LON:OCDO) (LSE:OCDO.L) and Compass Group plc (LON:CPG) (LSE:CPG.L).
I’m particularly excited about Shell’s investor update. The oil and gas company is expected to release H1 results on Thursday. I’ll be looking for news on its investment programme given the more optimistic outlook among investors on the future oil and gas prices. I’m also keen to see how the integration of BG assets is progressing and how Shell sees its future cash flow developing.
I’m optimistic about Shell’s prospects, since I’m bullish on oil. Although I think there will be uncertainty as OPEC’s production cut may or may not be extended this year, I think Shell remains a sound long term investment.
AstraZeneca’s full-year results are due out on Thursday. I’ve long been a fan of the company, since its current management team focused on improving the pipeline via targeted investment. I think this will turn the company round in the long run, although I equally expect the last financial year to have been a difficult one as the loss of patents continues to hurt its investment performance.
It will be interesting to see how Ocado’s last financial year panned out tomorrow. I think there is a large growth opportunity in online grocery shopping and I feel that more customers will gradually migrate to shopping online for food.
However, I also think the investment opportunities within the space are slightly limited due to the high level of competition. That’s why Tesco and Sainsbury’s have diversified their businesses via the Argos and Booker acquisitions. Therefore, Ocado is a stock I can understand the appeal of, but it’s not one of my top picks.
Finally, Compass Group is expected to release a trading update to the stock market on Thursday. I like Compass because it’s a relatively stable stock. I feel in the current outlook these kinds of shares will perform well on a relative basis. Therefore, Compass is a share which I think could do well in 2017/18.