The FTSE 100 index remained virtually unchanged in yesterday’s trading. But some FTSE 100 stocks bucked the trend. Stocks like easyJet, BT, and BP were big gainers. As I write, EZJ and BP are still making gains. They stand out because they’ve been beaten down for a long time. The uptick is easily traced to their recent updates. These shares are still reeling from the stock market crash and the recession. But going by these updates, I think the worst is behind them.
Upbeat update helps FTSE 100 stock easyJet
First, let me talk about easyJet, whose share price showed the biggest gain, of 8.7%. This followed the company saying that in July, demand levels were better than expected. It now expects its losses to shrink in the next quarter compared to this one. This coupled with progress in addressing coronavirus and first signs of economic recovery bodes well for EZJ in my view. And I think my perspective is the same as all other investors’ who are driving up its share price. I think it’s still a somewhat risky call, but this FTSE 100 stock can be considered at the very least.
BT’s financials likely to stabilise
The BT share price has been suffering for a long time. After the stock market crash and the subsequent withdrawal of its dividend, things got even worse. This decline seems to have been arrested now, however. This is evident from the sharp rise in share price of over 8% since yesterday, following its latest results on Friday. Much like easyJet, I think this FTSE 100 stock has also benefited from its positive outlook. It expects to be profitable in this financial year and to “return the business to sustainable adjusted EBITDA growth” after it, according to CEO Philip Jansen. I think the BT share price can show further recovery from here and reckon that in time it will start paying dividends again too. It’s one to consider.
BP’s making positive changes
Oil biggie BP saw an increase in share price of over 6% yesterday despite the fact that it cut dividends and reported a loss. However, it also reduced debt and is making strides towards clean energy. BP has long been a dividend-paying stock, so I think its passive income is dependable for now even though its loss-making. But the near to medium term outlook for the economy is iffy. This will play on oil demand, and relatedly, price. I already hold the stock, but if I didn’t, then I’d wait for at least another quarter for more signs of turnaround before investing. In the meantime, I’d invest in FTSE 100 stocks that offer more guaranteed returns.
Investing view on FTSE 100 stocks
Among the three, this may sound contrarian, but I’m most inclined towards the BT share price, followed by EZJ and BP. But if I’m really not convinced of any of these FTSE 100 stocks, I’d look at some high-performing defensives that have held investors in good stead despite the market crash.