Several organizations I’ve covered in recent weeks have released updates in October. I am looking forward to all this. They can help me reflect on my perspective on this FTSE 100 Also presents stock and good buying opportunities.
Tesco’s first lockdown update
The first is the largest grocer in the UK, Tesco. The company warned us earlier this year that its sales growth could slow after last year’s lockdown. This is seen in its trading update published in June. Its corresponding (LFL) sales, which only measure the underlying growth considering it in the same store, increased by only 1% for 13 weeks on May 29 of the year.
When it releases its interim results next week, I want to know how its sales are now. On the way to the recovery of the economy, they may show an upswing. However, rising prices have only increased its costs, which could affect profits. Either way, it would be good to know the progress of the next update after the first lockdown of the retailer. This may tell me whether my valuation of the stock needs to be reconsidered.
Temple price problem
The second is the FTSE 100 paper and packaging provider Earth, Which released its trading statement next week. Here, too, I am interested in how much inflation is affecting it. Earlier this year, it identified the risk of rising costs. Then in August, when it released its half-year results, the company was more confident and said it had been able to pass them.
Whether this price increase has been well received by its customers or will become clear in its trading updates. This is a particularly interesting stock to wait for, as inflation concerns have increased since its last update. In addition to reflecting the stock itself, this could be an example of how price trends are affecting FTSE 100 companies.
Will Rio Tinto give good news in the end?
The third is the multi-metal minor Rio Tinto (LSE: RIO), whose share price has fallen about 25% since August. This sent it back to the level it was last seen a year ago. One reason for this is that it has come under the lens of the Financial Conduct Authority to confuse potential investors about the cost increase in its huge copper project in Mongolia. And it cannot be taken lightly. Its FTSE 100 peer Glencore Faced with ongoing share price losses over the years, at least partly due to bribery allegations, not too long ago.
Another reason is the influence of China. FTSE 100 Mining has recently spent some challenging days in the stock market as public spending in the country has declined. In addition, the near-fall of Chinese property developer Evergrand could weaken investor confidence in companies whose fortunes are closely linked to the country’s economy.
But Rio Tinto released its functional update in the second week of October. If it’s good, I think investors’ confidence in the stock could return. As a shareholder in Rio Tinto, I have a special interest in this stock.
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Coronavirus epidemic disrupts markets around the world …
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Manika Premsingh owns shares in Glencore and Rio Tinto. Motley Flowers UK has recommended Tesco. Opinions expressed in the companies mentioned in this article may differ from those of the author and therefore our official recommendations in our subscription services such as Share Advisors, Hidden Winners and Pro. Here at The Motley Flower we believe that considering a variety of insights makes us a better investor.