Although UK share prices have generally risen so far in 2017, not all share prices are in the black. Actually, I haven’t found it much of a challenge to find 4 share prices in the red so far this year.
The Tesco PLC (LON:TSCO) (LSE:TSCO.L) share price is 9% lower now than it was at the start of the year. Some of this fall could be due to Brexit fears, with higher inflation possibly causing investors to adopt a cautious outlook on UK retailers. I’m of the view that Tesco has a good strategy which could boost its share price in the long run. I feel there are risks ahead from higher inflation and passing higher costs onto consumers, but think Tesco has the business model to perform relatively well.
BT Group plc’s (LON:BT.A) (LSE:BT.A.L) share price is also 9% lower than its SP for 2017. I’m slightly surprised by this, as it had a profit warning not long ago. However, the deal with Openreach seems to have placated investors to at least some extent. I’m optimistic about BT’s share price in the long run due to the opportunities within quad play and its strategy of investing in sports rights. I also think the integration of EE opens up cross-selling opportunities.
easyJet plc (LON:EZJ) (LSE:EZJ.L) shares are 1% lower than at the start of the year. I think this is a relatively good performance given the uncertain future it faces. External problems such as weaker consumer spending and more competition have changed the company’s outlook in my view. I think it will take time for these factors to work their way through, but in the long term I think easyJet’s share price could rise. I also think its dividend appeal could help to bolster investor sentiment.
Centrica PLC (LON:CNA) (LSE:CNA.L) has registered a share price fall of 6% this year so far. However, I think its turnaround strategy could help it to reverse this decline in the long run. I feel the cost savings it plans on making as well as asset disposals could leave a healthier and stronger business. I feel this could make Centrica’s shares more appealing to income investors and lead to share price gains over the long run.