Last week was not a good one for the stock market, with investors fleeing to safe-haven assets as tensions in the Middle East continued to rise.
But in the midst of the decline, a few stocks stand out as ones to watch for this coming week. ASOS (LON: ASC), IAG (LON: IAG), and Aviva (LON: AV.) are the three that investors should be keeping an eye on. Here’s Why:
The online fashion retailer is scheduled to report its final results for the year ended September 3 on October 25.
There’s plenty to be concerned about if you are an Asos investor. But given the Q4 trading update, which showed sales declined 15%, there is the potential that much of the bad news is already baked in — note that Asos shares remained somewhat resilient last week despite the overall market decline.
Even so, the concerns are still evident. Asos’ inventory levels and ongoing transformation will be key points to watch in the upcoming release.
The British Airways owner is scheduled to report a Q3 trading update on October 27.
The company’s shares have fallen recently due to continued concerns about the rising cost of fuel.
However, IAG’s Q3 update could provide some positive news for investors, as passenger demand remains strong. Web traffic to the company’s British Airways and Iberia sites have remained near highs, suggesting the consumer appetite for international travel has not yet been beaten down by the current economic environment.
As a comparison, European low-cost carrier EasyJet said in its recent full-year update that it expects to report a record Q4 profit before tax.
Aviva is at the centre of continued takeover speculation.
While the initial surge in Aviva’s share price following the rumours has died down somewhat, there are still whispers, with Betaville’s Ben Harrington reportedly stating there have been “uncooked rumours circulating about an unknown bidder taking an interest in buying the whole group as the shares are currently flirting with a five year low.”
“The talk in the market is that an American bank and a European bank are advising an [sic] rival insurance firm on [a] possible takeover bid.”
Away from the takeover rumours, Aviva was recently upgraded by Jefferies and reinstated at Overweight by JPMorgan. Jefferies analysts said they expect Aviva to deliver a “best-in-class” capital return yield.
By James Fyeman