While it may seem as though there are fewer investment opportunities now the Footsie has moved higher, I’m contemplating the return potential of SSE PLC (LON:SSE) (SSE.L), Just Eat PLC (LON:JE) (JE.L), Rio Tinto plc (LON:RIO) (RIO.L), HSBC Holdings plc (LON:HSBA) (HSBA.L) and Burberry Group plc (LON:BRBY) (BRBY.L).
SSE’s investment appeal may seem to be limited at the moment. The company lacks the growth potential of some of its FTSE 100 peers, while nationalisation remains an ongoing threat.
However, with the SSE share price currently yielding around 6.5%, the company’s total returns could be high. And with a restructuring planned in the near term, it could be a surprisingly strong performer.
Rio Tinto could continue to benefit from strong global GDP growth. The company has been able to boost its financial performance, with the improving iron ore price being a contributing factor in my view.
With Rio Tinto having what appears to be a solid balance sheet and impressive dividend potential. I believe that it could offer total return prospects that are above those of the Footsie.
HSBC’s growth potential in Asia continues to be high in my opinion. The company has been able to put in place what appears to be a sound investment strategy, with it seeking to leverage its position in what remains a fast-growing region.
With a 5%+ dividend yield, the HSBC share price appears to offer good value for money. As a result, I think that it could deliver high returns in the long run, even though it may not be as efficient as some of its sector peers.
With Burberry’s strategy implementation apparently going to plan, the company’s growth outlook could improve. It is seeking to cut costs while at the same time focus on luxury products, with this strategy having the potential to create stronger growth in future years.
With the Burberry share price having risen by 19% in 2018, it now has a PE ratio of around 31. As a result, it may lack value for money, but could rise further in my view if its strategy causes a boost in EPS growth.
Just Eat’s investment in technology could help it to remain dominant in a number of its key markets. Alongside this, it seems to have the financial strength to engage in further acquisition activity, with it having a good track record in this area.
With Just Eat set to enjoy continued growth due in part to the switch by consumers towards online, I believe that the company’s future investment prospects appear to be bright.