The investment prospects for BP plc (LON:BP) (BP.L), Barclays PLC (LON:BARC) (BARC.L), Glencore PLC (LON:GLEN) (GLEN.L) and WM Morrison Supermarkets PLC (LON:MRW) (MRW.L) seem to be relatively bright in my opinion.
The outlook for the oil price is still positive in my view. Supply disruption caused by Hurricane Florence could push its price upwards in the near term, while supply concerns from some OPEC members may act as a tailwind over the medium term. This could be good news for BP, which is highly-dependent upon the oil price when it comes to its financial performance.
With BP’s shares having a dividend yield of around 5%, they seem to offer a margin of safety in my opinion. Further investment in its asset base could help to boost profitability over the coming years.
Barclays is set to significantly increase its dividend over the next couple of years. In fact, it is forecast to yield around 4.5% in 2019, which would be 50 basis points higher than the FTSE 100’s current yield.
This could increase demand for the FTSE 100 company’s shares over the medium term. With Barclays also due to post double-digit EPS growth next year and it having a single-digit forward P/E ratio, it seems to offer growth at a fair price to my mind.
Morrisons seems to be performing well according to yesterday’s update. The company’s profitability is moving higher, while it is also reducing net debt. A special dividend suggests that its management team is upbeat about its future growth prospects.
With Morrisons continuing to focus on growth areas such as convenience and online, its EPS growth rate may continue to rise. Although there is a risk from weak consumer confidence, it seems to be improving its customer loyalty. This could lead to stronger margins over the medium term.
Glencore’s financial prospects seem to be improving. The company is continuing to pay down its debt, while also improving its efficiency.
With the company set to benefit from a strong world economy, I think that its financial prospects could improve. Since the stock has a relatively low P/E ratio and a diverse business model, I’m optimistic about the long-term outlook for the Glencore share price.