The FTSE 100 has gotoff to a sluggishstart this week but there should be plenty of excitement ahead with a host of companies reporting their latest results.So what can investors expect from these three stocks, all of which report on Tuesday 1 March?
Mining giant Glencore (LSE: GLEN) is starting to put last years nightmare behind it. Havingbegun2016at 88.50p, it has since surged to around 134p, a rise of more than 70%. Brokers remain confident of further excitement, withCitigroup and UBS both still calling Glencore a buy with target prices of 140p and 160p, respectively.
Thats quite a turnaroundfor a company whose credit rating was cut to one notch above junk by S&P in early February. Management has been rewarded for itsambitious plans to slash the companys $30bn debt pile, by cutting costs, offloading assets, raising equity and halting its dividend. Signs of a rally in metals and oil prices have also helped boost sentiment and encourage contrarians.
You can buy Glencore at around 8.5 times earnings despite the recent rally but Im notconvinced that commodity stocks are out of the woods yet. Ill be looking for signs that debt is under control and management is confident it can withstand several years of low prices beforeadding my voice to thegrowing list of buy recommendations.
Office outsourcerRegus(LSE: RGU)has had a storming five years, rising 167% in that time, against negligible growth forthe FTSE 100 as a whole. Its third-quarter results showedgroup revenuesrising almost 16% from 413.6mto 478.8m, whilehealthyprofitability and cash flow has allowed management to reinvest in thebusiness with the aim of building incremental long-term shareholder value.
Regusis easy to overlook but Credit Suisse has taken notice, rating it an outperform with a target price of 400p, which would suggest nearly 40% upside from todays 288p. Itisnt immune to wider economic concerns, the share price is down 14% over the past three troubled months, and its ambitious long-term acquisition growth strategy could sacrifice earnings in theshort term. Ill be looking for evidence that management canjustify todayssupersonic valuation of39 times earnings.
While the big metals giants were in a holelast year, gold and silver minerFresnillo(LSE: FRES)was a glittering success.This year has broughtjoy for investors,with the share price leaping 44%from 703p to 1,018, as precious metals have lived up to their reputation of a safe haven in times of trouble. The gold price is up 9% over the last month at $1,233 an ounce while silver is up just 3.2%, but Fresnillo has outshone them both.
Last month it announced healthy increases in both gold and silver output, beating previous guidance, and management was also optimistic about future production. Investors will be hoping for more bullishness tomorrow. With even former Bank of England governorMervyn King now warningof an economic crash, gold (and silver) bugs could still have their day, and so could Fresnillo.
There are plenty more exciting growth prospects on the UK market today.
This mid-cap company has been putting on the style lately and one of the Motley Fool’s top analysts reckons it’s the latest British brand with the potential to go global.
To find out its name all you need do is download our BRAND NEW report A Top Growth Share From The Motley Fool.
Click here to read this no obligation report. It will be yours in moments and won’t cost you a single penny.
Harvey Jones has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.