While investor sentiment may have improved of late, I’m considering whether share price gains are ahead for Centrica PLC (LON:CNA) (CNA.L), AstraZeneca plc (LON:AZN) (AZN.L), Taylor Wimpey plc (LON:TW) (TW.L) and Rolls-Royce Holding PLC (LON:RR) (RR.L).
Centrica’s investor update released recently showed that the company is making progress with its strategy implementation in my view. It continues to deliver on its cost-cutting strategy, and this could help to improve its financial performance over the medium term.
Sure, it continues to experience challenges in parts of its business, but with a 7%+ dividend yield Centrica appears to have a large margin of safety.
Taylor Wimpey could outperform the Footsie in my view. The company appears to have a sound balance sheet and may benefit from favourable trading conditions.
Since the housing market continues to experience low supply versus demand levels, it seems as though price rises may be ahead. Interest rates are set to remain low, and this could support the financial performance of Taylor Wimpey – particularly with SDLT relief now in existence.
AstraZeneca’s road to recovery has been a long one – and it is still not there yet in my view. Further EPS declines are expected in the current year, and this could hurt investor sentiment to some degree.
However, with AstraZeneca expected to post positive EPS growth next year after a sustained acquisition programme, the stock seems to have a bright future. It has a 4% dividend yield and if dividends rise on the back of positive EPS growth, the company could become more popular among investors.
Rolls-Royce could experience a bright future in my opinion. The company appears to have a solid strategy under its current management team, where innovation and efficiency are taking centre stage.
This could help to propel the Rolls-Royce EPS growth rate higher – particularly with the potential for improvements in the wider defence sector. As a result, I feel that while volatility may be above average, its stock price could experience gains over the medium term.