Time to buy easyJet plc, Banco Santander SA, HSBC Holdings plc and National Grid plc?

Do these shares offer upside potential for the long run? easyJet plc (LON:EZJ) (EZJ.L), Banco Santander SA (LON:BNC) (BNC.L), HSBC Holdings plc (LON:HSBA) (HSBA.L) and National Grid plc (LON:NG) (NG.L)

National Grid plc
National Grid plc

With the FTSE 100 trading close to a record high, I’m wondering whether now is the right time for me to buy easyJet plc (LON:EZJ) (EZJ.L), Banco Santander SA (LON:BNC) (BNC.L), HSBC Holdings plc (LON:HSBA) (HSBA.L) and National Grid plc (LON:NG) (NG.L).

easyJet’s future prospects could be hurt by rising fuel costs. They are showing little sign of slowing down, and supply disruption could push the oil price even higher.

However, with the easyJet share price having a PEG ratio of 0.8 and a dividend yield of around 4%, I think that it offers a margin of safety for the long term. Its strong position within the marketplace may also help it to offer sustainable growth.

Santander’s future prospects appear to be encouraging in my view. The company has been able to improve on its efficiency in recent years. Alongside an improving market outlook in key markets such as Brazil, the stock has delivered stronger financial performance.

With Santander having a PE ratio that is less than 10, I think it could offer good value for money. With the global economy performing well, it could be a major beneficiary.

HSBC’s growth potential may also be boosted by the world economy. Its focus on Asia in particular could lead to a faster pace of growth than many of its rivals.

With HSBC relying on the UK for only 8% of its income, it may have less risk attached to it from Brexit than some of its sector peers. With further investment set to take place in its Asia-focused operations, I think it offers good value for money on a 5% dividend yield.

Speaking of dividends, National Grid is a company that I feel could hold income potential for the long term. Sure, its dividend growth rate may be behind those of some of its FTSE 100 peers. But with it set to match inflation in the foreseeable future, it could nevertheless be attractive.

While regulatory risk is heightened at the moment, National Grid seems to offer a margin of safety. Its 5%+ dividend yield suggests to me that it could offer impressive relative returns over 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