Although stock markets are pretty quiet at the moment, I’m considering the long-term prospects of ASOS plc (LON:ASC) (ASC.L), AstraZeneca plc (LON:AZN) (AZN.L), Aviva plc (LON:AV) (AV.L), ITV plc (LON:ITV) (ITV.L) and Glencore PLC (LON:GLEN) (GLEN.L). Do they have investment potential?
ASOS’s update released yesterday sent its share price lower. While its sales performance may be slightly behind expectations for the full year, the stock still has investment appeal in my eyes.
It remains highly successful at improving customer engagement, while it has been able to generate consistently high EPS and sales growth across multiple regions. As a result, I feel that the ASOS share price could move higher.
AstraZeneca could be a surprising growth share over the medium term. The company is expected to return to positive EPS growth in the next financial year after a difficult period that has seen its blockbuster drugs impacted negatively by generic competition.
With AstraZeneca having a PEG ratio of around 1.6, the company appears to offer a large margin of safety in my view.
Glencore’s diverse business model could help it to perform well in what remains a fast-growing world economy. This could act as a catalyst on its financial performance and help it to justify a higher valuation.
Since Glencore has a PE ratio of around 12, I think that it could offer good value for money. Its improving efficiency makes it a relatively attractive share versus sector peers.
Aviva’s excess capital could be used to boost its long-term performance. The investment it is set to make in acquisitions could improve its outlook, while its exposure to fast-growing markets may provide impressive returns further down the line.
With Aviva having a single-digit PE ratio, it appears to offer good value for money in my view. The stock’s 5%+ dividend yield also suggests that it could be a strong performer in the coming years.
ITV’s operational performance has remained robust in spite of difficult trading conditions. Weakness in the UK economy has contributed to a weaker advertising market, and this could mean that its bottom line fails to grow rapidly.
With the ITV share price having a PE ratio of 12, I think that it offers good value for money. As a result, the stock could be a strong turnaround opportunity for the long term.