4 improving shares? Interserve plc, Imperial Brands PLC, Premier Oil PLC and Rolls-Royce Holding PLC

Do these shares have turnaround potential? Interserve plc (LON:IRV) (IRV.L), Imperial Brands PLC (LON:IMB) (IMB.L), Premier Oil PLC (LON:PMO) (PMO.L) and Rolls-Royce Holding PLC (LON:RR) (RR.L)




Imperial Brands
Imperial Brands

I’m always on the lookout for shares that could deliver improving bottom lines, which is why I’m considering the prospects of Interserve plc (LON:IRV) (IRV.L), Imperial Brands PLC (LON:IMB) (IMB.L), Premier Oil PLC (LON:PMO) (PMO.L) and Rolls-Royce Holding PLC (LON:RR) (RR.L).

Interserve’s contract win announcement yesterday was positive news for the company in my view. It shows that even though trading conditions may be tough, the business is still able to compete effectively with its sector peers.

However, with revenue growth in its recent results being modest and the company having a large amount of debt, I believe that the Interserve share price has an uncertain future.

Imperial Brands is experiencing a period of significant change. Smokers are gradually moving away from cigarettes and towards next generation products. This could provide a new growth avenue for the business, with it having invested heavily in the segment.

With a 7%+ dividend yield, I think that Imperial Brands continues to offer good value for money. With defensive appeal, it could offer a sound risk to reward ratio as well as a rising dividend.

Rolls-Royce is making significant changes to its business model at the moment. The company is seeking to become increasingly efficient, and this could lead to stronger cash flow over the medium term.

With the defence sector experiencing a period of improving demand, I remain upbeat about the Rolls-Royce share price. Its focus on innovation and its core businesses could lead to improving EPS growth over the medium term.

Premier Oil’s update released yesterday showed that the company continues to make progress on its production growth, as well as on keeping costs down. This could lead to improving free cash flow in the second half of the year, as well as lower debt levels.

With the potential for supply disruption, I think that the oil price may move higher. As a result, and while still a relatively risky stock, I think that Premier Oil could perform well in the long run.




About Robert Stephens 3883 Articles
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 [email protected] or use one of the other contact methods available on the 'Contact Us' page