Do these shares offer good value for money? easyJet plc, Saga PLC, HSBC Holdings plc and ITV plc

Could these stocks deliver improving performance? easyJet plc (LON:EZJ) (EZJ.L), Saga PLC (LON:SAGA) (SAGA.L), HSBC Holdings plc (LON:HSBA) (HSBA.L) and ITV plc (LON:ITV) (ITV.L)

ITV plc
ITV plc

With the FTSE 100 having declined recently, I’m considering whether shares in easyJet plc (LON:EZJ) (EZJ.L), Saga PLC (LON:SAGA) (SAGA.L), HSBC Holdings plc (LON:HSBA) (HSBA.L) and ITV plc (LON:ITV) (ITV.L) could offer good value for money.

easyJet’s PEG ratio of around 0.8 suggests to me that the stock may offer growth at a reasonable price. Clearly, there are risks facing the business from issues such as weak consumer confidence. But I think that its strong position in the budget segment could help it to perform well versus rivals.

Further, the recent fall in the oil price may ease the pressure on costs across the industry. While potentially volatile in the near term, I believe that easyJet could deliver capital growth in the long run.

Saga’s share price has failed to mount a sustained recovery since its profit warning in late 2017. Challenging operating conditions seem to be weighing on its financial outlook, and this may cause investor sentiment to remain weak in the near term.

With a P/E ratio of around 10 and a dividend yield of over 7%, I feel that Saga could offer good value for money. With a refreshed strategy and a strong position within its key markets, I’m upbeat about its long-term performance.

HSBC’s decision to pivot to Asia could prove to be a sound move in my opinion. The company could capitalise on growing demand for banking services across the region, and this may lead to improving levels of profitability.

With HSBC having a dividend yield of over 5% at the moment, I feel that the company could offer a margin of safety. Although wider market volatility could impact on its share price, I’m optimistic about its growth potential in future years.

ITV’s financial performance is set to be negatively impacted by the weaker UK economy in my view. Its EPS growth forecasts are relatively downbeat for the next two years, with digital advertising also potentially taking business away from TV advertising.

However, with a P/E ratio that is barely in the double digits and the prospect of a renewed strategy, I think ITV could offer long-term growth potential. It may be relatively risky at the moment, but its long-term rewards could be relatively impressive.

About Robert Stephens 5151 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