Are improving returns ahead for Glencore PLC, Diageo plc, AstraZeneca plc and HSBC Holdings plc?

Can these companies deliver rising share prices? Glencore PLC (LON:GLEN) (GLEN.L), Diageo plc (LON:DGE) (DGE.L), AstraZeneca plc (LON:AZN) (AZN.L) and HSBC Holdings plc (LON:HSBA) (HSBA.L)

HSBC Holdings plc
HSBC Holdings plc

The investment prospects of Glencore PLC (LON:GLEN) (GLEN.L), Diageo plc (LON:DGE) (DGE.L), AstraZeneca plc (LON:AZN) (AZN.L) and HSBC Holdings plc (LON:HSBA) (HSBA.L) are the focus of this article. Could they deliver improving performance?

Glencore’s near-term prospects appear to be relatively volatile in my view. The company’s share price could be held back by uncertainty surrounding the global economy, as well as regulatory risks facing the business.

However, with a single-digit P/E ratio and what I believe is a stronger business model following a number of asset disposals and cost-cutting exercises, I think that Glencore could offer growth potential over the long run.

Diageo’s focus on its efficiency could create a stronger business with higher margins. Alongside this, it has exposure to fast-growing markets across the world, and this could act as a tailwind on its sales performance.

With Diageo having what appears to be a wide range of strong brands, I feel that it could also offer defensive characteristics. While not a cheap share, I feel that it has the potential to beat the FTSE 100 over the long run.

HSBC’s investment in its growth opportunities could yield improving bottom-line results. The company is increasing its focus on faster-growing economies across Asia, and this may provide it with a catalyst over the medium term.

With HSBC also focused on becoming more efficient, I feel that the company may enjoy a period of improving financial performance. With a 6% dividend yield, I think that the stock may also offer an improving income return over future years.

AstraZeneca’s investment in its pipeline over recent years could begin to pay off. The company is due to report a return to double-digit EPS growth next year, and this could cause an improvement in investor sentiment in my opinion.

With AstraZeneca seeming to have a strong balance sheet and impressive cash flow according to my research, I feel that further investment in its pipeline could be ahead. This could act as a catalyst on its financial performance and lead to capital growth over the medium term.

About Robert Stephens 5138 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