While the FTSE 100 has made gains lately, I’m considering whether there is good value on offer via Royal Mail PLC (LON:RMG) (RMG.L), Boohoo.Com PLC (LON:BOO) (BOO.L), IQE plc (LON:IQE) (IQE.L) and Tullow Oil plc (LON:TLW) (TLW.L).
Royal Mail’s 4% dividend yield continues to appeal to me at a time when the company appears to have a solid strategy. It has been able to improve the efficiency of its UK business during a period where demand for its services has been mixed.
Sure, management changes could cause some uncertainty for the company over the medium term. However, with international growth potential and what seems to be a margin of safety, I’m upbeat about its prospects.
Boohoo has been a strong performer in recent years, and the company seems to have an ambitious strategy. It is seeking to generate £3 billion in sales over the long term, and this could transform its share price performance in my view.
With Boohoo having a good track record of integrating new growth opportunities into its operations, it could enjoy a bright future in my view. Its international focus means it may not be negatively affected by Brexit as much as some of its sector peers.
IQE’s strategy appears to be working well, with the company having strong EPS growth forecasts over the next couple of years.
Although investor sentiment has been mixed in recent months, the stock still seems to offer good value for money compared to some of its TMT peers in my view. IQE’s PEG ratio of less than 1 suggests that it could generate capital growth over the medium term.
Tullow Oil’s exploration potential could be a positive catalyst on its share price over the medium term. Investor sentiment towards the oil and gas sector appears to have improved, and if the oil price increases in future then it could mean that further upside potential is ahead.
With Tullow Oil aiming to reduce debt levels over the coming years, it could offer a stronger risk to reward ratio than it has in the past. Therefore, it could move higher after a strong 2018 so far.