Will These 3 Turnaround Stocks Continue To Soar? Glencore PLC, Burberry Group plc And William Hill plc

Should you buy these 3 stocks after recent gains? Glencore PLC (LON: GLEN), Burberry Group plc (LON: BRBY) and William Hill plc (LON: WMH)

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Shares in Burberry (LSE: BRBY) have soared by 17% in the last month, with speculation regarding a potential bid for the fashion house spurring its shares onwards and upwards. While there can be no certainty that a bid will be made, it would not be a major surprise, as Burberry is a high quality company trading on an appealing valuation.

Bright future

Although its focus on emerging markets has hurt its recent financial performance and, prior to recent months, caused its share price to decline, Burberry has a bright long term future. Markets such as China have tremendous growth prospects from the expected consumer boom in the coming years and with Burberry being well-positioned within key growth markets, its bottom line could soar over the coming years.

In addition, Burberry retains a high degree of customer loyalty. This provides it with the opportunity to increase its prices at a brisk pace so as to boost sales and profitability. And with its shares trading on a price to earnings (P/E) ratio of 19.1, there is upward re-rating potential since a number of other global consumer stocks trade of P/Es of well over 20.

Should you invest £1,000 in Carlsberg Britvic right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Carlsberg Britvic made the list?

See the 6 stocks

Upbeat outlook

Also making share price gains in recent weeks has been bookmaker William Hill (LSE: WMH). Its shares have risen by 5% in the last month, even though it released a set of rather disappointing results for the 2015 financial year. In fact, investors seem to have latched on to the company’s upbeat outlook and plans to raise dividends rather than focus on the difficulties which it faces from increasing competition in the online gaming space.

While William Hill is expected to increase its bottom line by 4% in the current year, despite the difficult trading conditions, its shares appear to be rather fully valued. For example, they trade on a P/E ratio of 14.9 and with the wider market being relatively cheap, there appear to be better options elsewhere.

Star performer

Meanwhile, resources company Glencore (LSE: GLEN) has been a star performer in 2016. Its shares are up by 62% year-to-date, with rising commodity prices being a key reason for this. Looking ahead, there is plenty of scope for further gains in their prices, although there is clearly a high degree of volatility and risk associated with buying Glencore right now.

Also boosting its share price have been reasonably positive updates regarding then company’s debt reduction plans, as it seeks to improve its financial standing during challenging trading conditions. With Glencore expected to increase its bottom line by as much as 66% next year, its price to earnings growth (PEG) ratio stands at only 0.4. This indicates that there is plenty of scope for further capital gains over the medium term and so for less risk averse investors, Glencore could prove to be a sound buy.

Should you buy Carlsberg Britvic shares today?

Before you decide, please take a moment to review this first.

Because my colleague Mark Rogers – The Motley Fool UK’s Director of Investing – has released this special report.

It’s called ‘5 Stocks for Trying to Build Wealth After 50’.

And it’s yours, free.

Of course, the decade ahead looks hazardous. What with inflation recently hitting 40-year highs, a ‘cost of living crisis’ and threat of a new Cold War, knowing where to invest has never been trickier.

And yet, despite the UK stock market recently hitting a new all-time high, Mark and his team think many shares still trade at a substantial discount, offering savvy investors plenty of potential opportunities to strike.

That’s why now could be an ideal time to secure this valuable investment research.

Mark’s ‘Foolish’ analysts have scoured the markets low and high.

This special report reveals 5 of his favourite long-term ‘Buys’.

Please, don’t make any big decisions before seeing them.

Claim your free copy now

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Peter Stephens owns shares of Burberry. The Motley Fool UK has recommended Burberry. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Man smiling and working on laptop
Investing Articles

3 FTSE 250 shares with low P/E ratios and sky-high dividend yields!

Searching for the best bargains that London has to offer? Here's a handful from the FTSE 250 I think are…

Read more »

Investing Articles

Why is Apple stock lagging the S&P 500 in 2025?

Our writer is wondering whether now might be an opportune time to snap up shares of the largest company in…

Read more »

Investing Articles

Here’s how an ISA investor could build a £20k passive income with UK shares

Looking to make a five-figure passive income in retirement? Here's how a blend of UK shares and cash savings could…

Read more »

Investing Articles

£10,000 in savings? Here’s how an investor can target £3,560 in annual passive income

Paul Summers explains how an investor could target making thousands of pounds in passive income by holding great dividend stocks…

Read more »

Young Asian man drinking coffee at home and looking at his phone
Investing Articles

Up 490%, Lion Finance Group is a new name on the FTSE 250… but what is it?

Many investors won’t be familiar with Lion Finance Group, but the FTSE 250 stock has surged 490% over five years.…

Read more »

Growth Shares

I think this is the most punished FTSE stock in the market right now

Jon Smith talks through a FTSE company that has endured problems but is one he believes has a brighter future…

Read more »

Smart young brown businesswoman working from home on a laptop
Investing Articles

Stock market correction! 1 growth share down 53% to consider buying now

This writer highlights a growth stock that has hit a rough patch in recent weeks. Here's why it might be…

Read more »

Investing Articles

Here’s why the Tesco share price has dropped 18% in a month!

Tesco's share price has lost nearly a fifth of its value since mid-February. Is this FTSE 100 dividend stock now…

Read more »