With the FTSE 100 having risen of late, I’m considering whether there is upside potential ahead for Centrica PLC (LON:CNA) (CNA.L), Vodafone Group plc (LON:VOD) (VOD.L), Rolls-Royce Holding PLC (LON:RR) (RR.L) and Hurricane Energy PLC (LON:HUR) (HUR.L).
Centrica’s future may appear to be uncertain, but the stock could have a large margin of safety that improves its investment appeal. It currently has a dividend yield of around 7.5%, which suggests to me that the stock market may have factored in its future risks.
With Centrica in the process of pivoting towards domestic energy supply and management, it could experience further volatility in its share price. However, with cost reductions moving ahead, I believe that it could emerge as a stronger business.
Vodafone’s transformation in the last few years has been impressive in my opinion. It has invested in its network, while also making multiple acquisitions. This strategy seems to be working well, with the company expected to post double-digit EPS growth in the next financial year.
With Vodafone having a 6% dividend yield, I feel that it may be undervalued at the moment. Therefore, it remains one of the more appealing stocks in the Footsie in my eyes.
Hurricane Energy’s recent updates have showed that the company appears to be moving along with its strategy. It is expecting to deliver first production from its Lancaster EPS next year, and this could have a positive impact on investor sentiment.
With scope for a higher oil price over the medium term, the oil and gas industry could see investor sentiment improve in future. As a result, I’m upbeat about Hurricane Energy’s share price potential, although it may remain relatively volatile.
Rolls-Royce seems to be focusing on the right areas of its business in my opinion. The company is investing in new products and is seeking to become more innovative. It is also aiming to become more efficient, and this could have a positive impact on its bottom line.
With the defence industry appearing to have a brighter future than it has done in recent years, Rolls-Royce could enjoy a tailwind over the medium term.