The investment outlooks of SSE PLC (LON:SSE) (SSE.L), Boohoo.Com PLC (LON:BOO) (BOO.L), Royal Bank of Scotland Group plc (LON:RBS) (RBS.L) and Ocado Group PLC (LON:OCDO) (OCDO.L) are the focus of this article. Could they deliver rising share prices?
SSE’s share price could remain volatile in the near term in my view. The company recently warned on its profits due to poor weather conditions, and this could keep investor sentiment pegged-back over the short run.
SSE now has a dividend yield in excess of 8% and what I feel is a sound strategy that includes dividend growth over the next five years as well as a demerger. As a result, it seems to offer strong total return potential in the long run in my view.
Boohoo’s growth potential seems to be encouraging in spite of Brexit risks in my opinion. Sure, the company has a diversified geographic exposure, but the UK remains a key market. Therefore, it may not be immune from weak consumer confidence.
That said, the company’s relatively low price point, loyal customer base and focus on innovation could help it to outperform many of its sector peers. As a result, I’m optimistic about the investment prospects for Boohoo.
The underlying performance of RBS remains relatively strong according to my research. The FTSE 100-listed bank has steadily improved its profitability in recent years, and further growth in this area is forecast over the next couple of years.
In spite of this, the RBS share price has a single-digit P/E ratio. With the end of PPI in sight, I think the stock could perform well over the long run, with growing dividends having the potential to act as a positive catalyst.
Ocado’s focus on applying its technologies to retailers that wish to focus on their online performance could yield impressive results over the long run. Consumers are increasingly heading online to buy products, and the company could therefore enjoy a tailwind over the medium term.
Sure, Ocado lacks profitability and has a high valuation at the moment. But in the long run it could be a strong performer in my opinion, following its share price growth in recent months.