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RR and GLEN: Two FTSE 100 Shares with Higher Upside Potential
Global Markets

RR and GLEN: Two FTSE 100 Shares with Higher Upside Potential

Story Highlights

According to analysts, the share prices of these two UK-based companies will increase by more than 15%.

In today’s article, we have shortlisted two FTSE 100 companies: Rolls-Royce Holdings (GB:RR) and Glencore (GB:GLEN). The stock prices of these two companies are projected to increase by more than 15% in the next year. Glencore has received a Strong Buy rating from analysts, while Rolls-Royce has been assigned a Moderate Buy rating.

According to the TipRanks Smart Score tool, both stocks have earned a “Perfect 10”, implying a higher potential to beat the market returns. This tool is a distinctive rating system that evaluates shares based on eight crucial factors and assigns a score between 1 and 10. These factors include the analysts’ ratings, the buying or selling activities of hedge funds, and fundamental and technical aspects that influence a stock’s potential to outperform the market.

Let’s examine the details.

Rolls-Royce Holdings PLC

Rolls-Royce Holdings is an engineering firm that specializes in the production of engines and power systems for the aerospace and defense industries.

Over the last six months, the company’s stock has surged almost 80%, mainly pushed higher by its record numbers in its 2022 annual results due to a strong rebound in the airline industry after the pandemic. Consequently, Rolls-Royce has emerged as one of the top-performing stocks on the FTSE 100 index in recent times.

Despite the boom, analysts still feel bullish on the stock as they watch the company execute its transformation program toward a stronger business.

13 days ago, UBS analyst Ian Douglas reiterated his Buy rating on the stock, having upgraded it from Hold in March. He believes the shares are “abnormally cheap.” Douglas remains highly positive on Asian markets and feels the reopening of China is an essential yet underestimated catalyst that has the potential to align valuations with historical norms. He predicted an upside of around 35% in the share price.

Is Rolls Royce a Good Stock to Buy?

According to TipRanks, the RR stock has a Moderate Buy rating, which is based on six Buy, one Hold, and one Sell recommendations. The average price forecast is 178.58p, implying a growth of 20% on the current trading levels.

Glencore PLC

Glencore is a mining company that deals in a range of commodities, including copper, cobalt, nickel, zinc, and lead, among others.

Overall, analysts are highly bullish on the stock, considering its strong earnings and higher dividends. The company has a dividend yield of 6.57%, which has the potential to increase further in the coming years. The proposed dividend for 2023 is $0.44 per share for the previous year, paid in two equal installments. Analysts forecast this payment to increase to $0.56 in 2024.

In the past 15 days, there has been a lot of action around the stock, with several analysts reaffirming their Buy ratings.

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Glencore Stock Forecast

Based on 12 Buy recommendations, GLEN stock has a Strong Buy rating on TipRanks. The average target price is 591.4p, which is 32.5% above the current trading level.

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Conclusion

Analysts are bullish on both RR and GLEN and are confident about further upward movement in their share prices. Considering this, these UK stocks could make valuable additions to investors’ portfolios.

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