Investor expectations can be a gift or a curse. Sometimes they allow investors to buy shares at discounted prices because the market expects a difficult period. Other times, however, they can lead to a disappointing share price performance even if a company records high earnings growth. In such a scenario, if profit growth falls below expectations, share price falls can be on the cards.
One stock which has seen investor expectations deteriorate in recent weeks is SSE (LON:SSE). The general election has prompted a return of the political risk which was present in 2015, when various political leaders made utility companies culpable for a cost of living 'crisis'. Price caps and the potential for nationalisation have caused the SSE share price to fall 5% since the start of the year.
However, a share price fall means SSE now yields 6.2%. At a time when inflation is moving higher and SSE is aiming to match RPI in dividend growth, it could prove to be a sound long-term buying opportunity.
by Zak Mir| Trading| 1 mins. to read Having interviewed the CEO of Challenger Acquisitions (LON:CHAL) a couple of times, and having liked the concept behind the company, it is good to see the first stirrings of recovery for the stock price.
by John Kingham| Equities| 8 mins. to read Over the last two of month's I've outlined a series of ten questions which I use to help me avoid yield traps. This month I'm going to interrogate a company using those questions so that you can see them being used in a practical setting.
by Zak Mir | Trading | 1 mins. to read It has been a long wait for fans of Silence Therapeutics (LON:SLN) to get a decent rebound in the stock, with the biotechnology group serving up quite a journey ahead of the latest news regarding its intellectual property estate,
by Richard Gill | Equities | 10 mins. to read Valuing shares is a tricky business. That's why over the decades equity analysts have developed a range of different ways to estimate how much a company could be worth.
by Robert Stephens | Equities | 5 mins. to read When it comes to investing, it seems as though timing is everything. Even the best stocks can have their bad days. And the 'dogs' of the index can enjoy periods of stunning share price growth.
Material contained within Master Investor Magazine and its website is for general information purposes only and is not intended to be relied upon by individual readers in making (or refraining from making) any specific investment decisions. Master Investor Ltd. does not accept any liability for any losses suffered by any user as a result or any such decision.
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