The FTSE 100 continues to have investment appeal in my eyes, which is why I’m taking a look at the prospects of HSBC Holdings plc (LON:HSBA) (HSBA.L), Vodafone Group plc (LON:VOD) (VOD.L), GlaxoSmithKline plc (LON:GSK) (GSK.L) and Marks and Spencer Group Plc (LON:MKS) (MKS.L).
HSBC’s growth potential may be surprisingly strong in my view. The company seems to offer an upbeat outlook due in part to the investment it is making in its operations, with Asia being the main focus.
With HSBC’s share price being undervalued in my view due in part to its 5%+ dividend yield, the company seems to have high total return potential. It remains one of the stronger FTSE 100 banks in my eyes.
Vodafone’s strategy seems to be working well. The acquisitions it has made in recent years seem to be putting it in a strong position to deliver growth, with it being expected to post a double-digit EPS rise in the next financial year.
With Vodafone having a diverse business model and it having invested heavily in its network over the last few years, it seems to be in a strong position to perform well versus the wider FTSE 100.
GlaxoSmithKline’s investment in its pipeline has been complemented by a change in strategy in my view. It is now focusing on a smaller number of opportunities that could prove to be more rewarding.
This could mean that GlaxoSmithKline offers a stronger risk to reward ratio for the long term, and that it is able to generate improved share price performance as a result.
Marks and Spencer may not be the top performing retail stock at the moment. But I think that it has recovery potential, with a focus on its fundamentals having the prospect of boosting its efficiency versus sector peers.
With the Marks and Spencer share price offering a 6%+ dividend yield and it having a PE ratio of around 12, I think that it could be a strong long-term performer. While potentially volatile, it could outperform the Footsie in future years.