Does Biffa PLC have more recovery potential than Saga PLC and AstraZeneca plc after today’s news?

Is Biffa PLC (LON:BIFF) (BIFF.L) a more appealing turnaround stock than Saga PLC (LON:SAGA) (SAGA.L) and AstraZeneca plc (LON:AZN) (AZN.L)?

Biffa PLC
Biffa PLC

The Biffa PLC (LON:BIFF) (BIFF.L) share price has fallen by around 4% today after it released full year results. The company’s net revenue increased by 8.8%, while underlying EBITDA moved 8.9% higher versus the previous year.

The company was able to move forward with its strategy. It completed seven acquisitions during the period, while it continues to have a pipeline of strong opportunities. Its recent infrastructure developments have continued to deliver as expected, while it remains on track to meet expectations for the new financial year.

Alongside Biffa’s results, it also announced that its CEO will step down from his position. He will be replaced by the current CFO, with the company now engaged in a search for a new CFO. Until an appointment has been made, the CEO will continue in his current role.

This could create a period of instability for the business in my view, since investors can often respond with caution to management change.

In the last three months the Biffa share price has risen by 19%. That’s a better performance than other shares that are experiencing uncertain periods, such as Saga PLC (LON:SAGA) (SAGA.L) and AstraZeneca plc (LON:AZN) (AZN.L). The Saga share price is up by 10%, while AstraZeneca has moved 12% higher over the same three-month time period.

In my view, Biffa has a relatively bright future. Sure, there may be some volatility in the near term, but it seems to have a solid strategy and with EPS set to grow over the next two years, its shares could continue their recent upward momentum.

I feel that of the three stocks, AstraZeneca may offer the strongest risk to reward ratio. It is due to deliver its first EPS growth in a number of years in 2019, and this could stimulate investor sentiment to a significant degree. With a PEG ratio of 1.6, it seems to offer good value for money in my eyes.








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Robert Stephens is a CFA Charterholder and an Equity Analyst by trade. He is a passionate private investor who has been buying and selling shares for many years, owning a wide range of UK shares in the process. He has written for Citywire and The Motley Fool US and now runs his own business. To contact Robert, please email info@investomania.co.uk or use one of the other contact methods available on the 'Contact Us' page