The share price performances of Next plc (LON:NXT) (NXT.L), Vodafone Group plc (LON:VOD) (VOD.L), Standard Life Aberdeen PLC (LON:SLA) (SLA.L) and SSE PLC (LON:SSE) (SSE.L) have been relatively disappointing of late. Could they deliver improving growth outlooks?
Next’s recent update showed that it was able to generate sales and profit growth in spite of a challenging operating environment. It has a track record of doing so according to my research, with the company outperforming many of its industry peers following the financial crisis.
With Next continuing to deliver online sales growth, I feel that its long-term outlook may be positive. Weak consumer confidence due to Brexit may hurt its near-term prospects, but a P/E ratio of around 11 suggests to me that the stock may have investment appeal.
Vodafone’s dividend yield has risen to over 8% on the back of weak share price performance. Investors appear to be cautious about the company’s financial outlook as it embarks on an ambitious investment and acquisition programme.
In my view, there are risks ahead for Vodafone. However, with partnership agreements and investment in its offering set to be delivered, I believe it may have growth potential alongside a margin of safety in its valuation.
Standard Life Aberdeen endured a tough 2018, with investors becoming increasingly cautious following its merger. This trend could continue in the near term in my view, with global stock markets expected to experience a volatile period.
However, with the stock now having a dividend yield of over 7% and a P/E ratio of around 10, I think that it could offer good value for money. The strategy being implemented by Standard Life Aberdeen may also help it to perform well versus the FTSE 100 over future years.
SSE’s recent profit warning led to deteriorating investor sentiment, with the utility stock underperforming the FTSE 100 in recent months, With there being uncertainty about its future strategy and structure, investors may continue to demand a margin of safety over future months.
With a dividend yield of around 8%, I feel that the SSE share price could offer income investing appeal over the long run. It has a 5-year dividend growth plan which may help to improve its popularity among investors at a time when the prospects for the wider economy are uncertain.